BOB ~ DOLE ~~~~~~I~D~:~2~0~2 -- ~4o~s~-~5~1~1~7~~~~~A ~P R This document is from the collections at the Dole Archives, University~0~8~'~ of9~ 4Kansas~~ 1 4~:1~9 No. 009 P. 02 http://dolearchives.ku.edu
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PlNAL Contact: Mo Taggart 703/684-7848 Jo-Anne Coe 703/845-1714 SENATOR DOLE SCHEDULE -- APRIL 9, 1994 -- AyABAMA~ - LOUISIANA SATQRDAY, APRIL 9, 1994 11:15 am DEPART Watergate for National Airport/Signature Flight Driver: Colin Beeper: 202/224-4488 #553 . 11:30 am ARRIVE National Airport and proceed to departing aircraft FBO: Signature Flight 703/419-8440 11: 35 am DEPART Washington for Birmingham, AL (EDT} FOB: Torchmark Hangar ~.. Aircraft: Hawker (Torchmark) ' Tail number: N6TM Flight time: 1 hour 45 minutes Pilots: Todd Drew (B) 1-800-217-9801 Chic Preston Manifest: Senator Dole Meal: Lunch Time change: -1 hour
12:20 pm ARRIVE Birmingham, AL (CDT) FBO: Torchmark Hangar 205/325-2643 Met by: Martha Foy, National Committeewoman Perry Hooper, National Committeeman Dr. Gill Wideman, Finance Chairman ADVANCE: Fairley McDonald, Steering Committee in Montgomery DFP '88 205/834-1180 FAX 205/834-3172
12:25 pm DEPART airport for Alabama State Party Fundraising Reception Driver: Dr. Gill Wideman Drive time: 20 minutes Location: Home of Lyndra and Bill Daniel 2716 South Wood Road 12:45 pm ARRIVE Daniel's Home and proceed to VIP Reception with sponsors and hosts 205/870-1654 NO~E: Use lower level entrance Location; Lower level - Den Attendance: 12-15 sponsors - $5,000 ea hosts - $1,000 couple Event runs: 12:45 - 1:00 pm Facility: None Format: Mix and mingle - No remarks Informal photos
Page 1 of 58 D BO B OL ~E ~~~~~~~~I~D~: ~2~0~2 -;;-4r~)8()[5~1n1~7r-~~~--"'l'R~P>cR>ri 0 This document is from the collections at the Dole Archives, UniversityO~S'' of9 ~4Kansas~~ 1G4~:~1c9lFN o. 00 9 P. 03 http://dolearchives.ku.edu
SATURDAX. APRIL 9, 1994 (cont'd) PAGE TWO
1:00 pm DEPART VIP Meeting for Alabama State Party Fundraising RecGpt ion __ Location: Upper level - den & living room 1:05 pm ATTEND Alabama State Party Fundraising Reception Location : Upper level - den & living room Attendance: 100-200 $250/Couple Event runs: .·· 1:00 - 1:45 pm ·' Press: Closed Facility: None. Format: Mix and Mingle Perry Hooper introduces Senator Dole Senator Dole gives brief remarks (2-5 minutes) .. Contact: Elbert Peters 205/961-4722 ,. 205/859-3186 l :45 pm OEPART Reception for Statewide Rally Driver: Perry Hooper, National Committeeman Drive time: 10 minutes Location: Homewood Park & Recreation Center 1632 Oakmoor Road
1:55 pm ATTEND/SPEAK at Statewide Rally 205/877-8668 205/877-8681 Location: Outside - Homewood Park & Recreation Center Attendance: 800 Event runs: 12:30 - 3:00 pm Press: Open Facility: Stage, podium and mic Format: 2:00 pm Congressman Spencer Bachus . introduces Senator Dole ' 2:05 pm Senator bole gives remarks Contact: Elbert Peters 205/961-4722 205/859-3186 2:30 pm DEPART stage exiting through crowd
2:45 pm DEPART Rally for Birmingham Airport/Torchmark Hangar Driver: Elbert Peters, Chairman Dr. Gill Wideman, Finance Chairman Drive time: 20 minutes
3:05 pm ARRIVE airpor L and proceed to departing aircraft FBO: Tor:chmark Hangar 205/325-2643
Page 2 of 58 ·-.~.' BOB DOLE This documentI D: 202 is -from408 the- collections5117 at the Dole Archives,APR University 08'94 of Kansas 14 : 20 No. 009 P . 04 http://dolearchives.ku.edu
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SATURDAY, APRIL 9, 1994 (cont'd) PAGE THREE
3:10 pm · PEPART Birmingham, AL for New Orleans, LA/Lakef ront Airport FBO: Aero Services 504/245-1140 Aircraft: Hawker (Torchmark) __ Tail number: N6TM Flight time: 1 hour Pilots: Todd Drew Chic Preston Manifest: Senator Dole
4:10 pm ARRIVE New Orleans, LA Met by: Quentin Dastugue, State Representative FBO: Aero Services 504/245-1140 <- {- 4:15 pm DEPART airport for Petroleum Club -,< Driver: Quentin Dastugue Drive time: 25 minutes Location: 1100 Poydras Street 4:40 pm ARRIVE Petroleum Club and proceed to brief interview for Republican Leadership 2,000 cable TV show f' ADVANCE: Mark Romig 504/866-8442 t· Location: Offices - 38th Floor (B) 504/552-0007 4:45 pm- Interview for Republican Leadership 2,000 4:50 pm Location: Offices - 38th Floor 4:50 pm DEPART interview for OPTIONAL Press Conf ei8nce Location: North Slote Room - 38th Floor AbVANCE: Mark Romig 504/866-8442 (B)504/552-0007 4:55 pm OPTIONAL Press Conference
5:10 pm DEPART Press Conference for High Donor Reception for Louisiana Republican Legislative Delegation Location: Jay Room - 3Sth Floor
5:15 pm ATTEND High Donor Reception for Louisiana Republican Legislative Delegation 504/524-3203 Location: Jay Room Attendance: 20-30 Event runs: 5:00 - 6:00 pm Press: Closed Facility: None Format: Photo-op upon arrival Mix and mingle - no remarks Contact: State Rep. Quentin Dastugue Brenda Trammell 504/582-2100
Page 3 of 58 ~~--~~ I~D~: ~20~2~-~41/0~8~-r571 ~1?,,,_~~~---;A~P)c)R BOB DOLE This document is from the collections at the Dole Archives, University08 of'94 Kansas 14 : 20 No . 009 P . 05 http://dolearchives.ku.edu
Sl++URDAY, APRiL 9, 1994 (cont'd) PAGE FOUR 5: 45 pm · DEPART High Donor Reception for General Reception for Louisiana Republican Legislative Delegation Location: Bay Marchand/Caillou Island Room 5:50 pm ATTEND/SPEAK General Reception for Louisiana Republican Legislative Delegation Location: Bay Marchand/Caillou Island Room Attendance: 200-300 Event runs: 5:45 - 7:30 pm Press: Open Facility: Riser, Podium and mic Format: Mix and mingle Senator John Hainkel introduces State Rep. Quentin Dastugue Quentin Dastugue will introduce Senator Dole Senator Dole gives remarks Contact: State Rep. Quentin Dastugue Brenda Trammell 504/582-2100 6:35 pm DEPART Reception for Louisiana State Republican Party Trust Reception Location: Wyldcatter Room 6:40 pm ATTEND Louisiana State Republican Reception Party Trust Location: Wyldcatter Attendance: 20-30 Trust members ($1,000 donors) Event runs: 6:30 - 7:30 pm Press: Closed Facility: None Format: Mix and mingle Contact: Jim Owens NOTE; 504/383-7234 Jimmy Coleman, SR. may attend. Previous owner of Windsor Court Hotel. 6:50 pm DEPART reception for Lakefront Airport/Aero Services Driver: Mark Romig Drive time: 25 minutes ADVANCE: Sam Moreau (assisting with car) 7: 15 pm ARRIVE airport and proceed to departing aircraft FBO: Aero Services 504/245-1140
Page 4 of 58 BOB DOLE This documentID:202-408-5117 is from the collections at the Dole Archives,APR University 08'94 of Kansas 14:21 No.009 P.06 http://dolearchives.ku.edu
SATORpAY, APRIL 9, 1994 (cont'd) PAGE Fl'.VE 7:20 pm DEPART New Orleans, LA for Washington/National Airport (CDT} FOB: Signature Flight Aircraft: Hawker (Torchmark) Tail number: N6TM Flight time: 2 hours 45 minutes Pilots: Todd Drew Chic Preston Manifest: Senator Dole Meal: Dinner Time change: +l hour 11;05 pm ARRIVE Washington National Airport (EOT} FBO: Signature Flight 703/4l9-8440 11:10 pm DEPART airport for Watergate Driver: Colin ·Beeper: 202/224-4488 #553 11:25 pm ARRIVE Watergate
Page 5 of 58 04/08/1994 13:25 5043838334This document is from the collections at the LADole REP Archives, PART UniversityY of Kansas PAGE 02 http://dolearchives.ku.edu
The Republican Party of Louisiana
MEMORADUM VIA FAX
TO: Suzanne Heimann FR: George M. Bonnett, Jr. j DT: 8 April 1994 RE: Event attendance list
Following is a list of confinned attendees as of 1:45 this afternoon. Some others should be added later. If you need anything else, please call at (504) 383-7234.
Charles Lane & Guest Harvey Koch & Guest Gary & Susan Pearson Pam Atiyeh & Guest Patrick O'Keefe & Guest Robert Jackson & Guest Billy Nungesser & Guest Harry Pastuzek & Guest Mike & Diane Francis Dud Lastrapes (State Party Chairman) Barry Kem & Guest Lynn Cheramie & Guest George Schneider & Guest Vic DeBouchel & Guest Hugh Hyman & Guest Bart Pepperman & Guest Charles Dunbar & Guest Ann Hein & Guest Roger Villere & Guest Will & Jane Griffin Polly Thomas & Guest Joan Sheehan & Guest Betsy Stout & Guest Chip Martin & 2 Guests Frank Wa1k & 3 Guests Anne Marie Wandeweghe & Guest Nick Giamhalluca, Sr. & Guest Nick Giamballuca, Jr. Gary Blaize & Guest
650 N. 6th Street Baton Rouse, Louisiana 70802 (501-) 383-723-+1 fa,. (504) 383..8334
?ai.d for ~ the 8epublk Bri efing Prepared for Senator BOb Dole Loui•iaaa Vi•it April - ltt• Page 7 of 58 04/05/1994 11:31 This5043838334 document is from the collections at the DoleLA Archives,REP PARTY University of Kansas PAGE 03 http://dolearchives.ku.edu Loui•iana'• Political c11.. te For over a century, political control in Louisiana has rested with Democrats. Democrats have held un unbroken majority in the state legislature and the judicial branch of state government since Reconstruction. And with the exception of the administrations of Dave Treen (1980-84) and Buddy Roemer (switched to GOP in middle of hie tet'D\, 1988-1992), Democrats have held the governor's mansion. current Governor Edwin Edwards is the standard bearer of the Democrat machine and its crippling ideoloqy of dependence on government which has been solidly in place since the days of Huey Lonq's practical dictatorship. Louisiana qovernment has often resembled that of a third world country than that of a state in the World's qreatest democracy. Governor Bdwin Bdvard• Edwin Edwards is a masterful politician. A classic populist, he was first elected as a reformer in 1972. However, he eoon proved to be a clever tactician of "politice as usual." Relyinq on the state's rich oil and gas revenues, Edwards doled out pork and political favors to allies and cronies for two terms until he was banned from running for a third term because of constitutional restrictions. In 1979, Dave Treen was elected Louisiana's first Republican qovernor since Reconstruction. However, his efforts at reform were hindered at every opportunity by Edwards allies who still controlled the leqislature. In addition, Louisiana beqan to feel the effects of the oil bust which hit the energy states in the early 1980's. These factors lead to Edwards election to a third term. However, through the mid-19 8 0 's, even Edwards was unable to survive the touqh times of the oil bust. Facinq aura defeat in 1987, he dropped out of a gubernatorial run-off with then- conservat i va DAm~r"t. C.onqri:'!ssman Buddy RoP.mP.r, who pl~r.P.ri f i rRt. in the primary. Roemer switched his party affiliation to Republican in the middle of hiA tarm. The 1991 election can only be described aa "stranger than fiction." Edwarda (who'R t . rP.mP.nnnnR rmll wit.hin (\'!ljnn Ann h11tr.k communities almost guarantees him 30\ of the vote) was back to face Roemer (backed by Preai.d@nt RnRh) Mnd CongrP.RRtnAn C1yd@ Ro11oway (the endorsed GOP candidate) • The addition of farmer Klansman David nukA crAAtAd .it vol ;iiit.i. l~ ~tmo~phe-re which g1&1nerated nationw.i dP. attention in an election which saw Edwards and Duke squee~e out RnP.mP.r. . Holloway finish@d fourth. Fl'.'lr thli!I run-off @l@ction, dubbed "The Race from Hell," Loui!laia.nians held their noees and voted for Edwards to insure the defeat of Duk@. Shortly thP.rP.;oift.er, "Fast Eddi@'a" fourth t.@rm b.9an. Edwards previous three terms, involved numerous investigations and the conviction of RomP. of hiA politir.~1 AlliAR. F.dw~rrlA h1mAP.lf has been indicted in the past, but he haa escaped conviction. Enclosed press clippinqs detail questionable Edwards activities during his current term. Page 8 of 58 04/ 06/ 19 94 11:31 5This04 3document838334 is from the collections at the DoleLA REPArchives, PART UniversityY of Kansas PAGE 04 http://dolearchives.ku.edu While Republicans in Louisiana still disagree about ~he role of gambling in building the state's economy, most Republicans agree that Edwards and the Democrats have let oversight of the jndu stry ~t out of control and it is highly ausceptable to corruption. A recent study by the University of Nevada-Las Vegas confirms this. Concerns over ethics start right at the top. Articles have focused on the fact that Edwards' own finance records show he earned more personal income from gambling winnings than he did as the state's chief executive last year. Newspaper reports aay he's played poker in the Governor's mansion with people seeking gambling business in Louisiana. Some accounts put amounts on the table in the thousand& of dollars. Edwards' son, Stephen, has been questioned by a grand jury for doing business with gambling interests in the state, although he and all the Edwards children signed an ethics conunission agreement not to do so after a previous public outcry. There are more than 10,000 lawyers in Louisiana, but four of fifteen riverboat gambling companies chose Edwards' son to represent them. One pays Stephen Edwards $130,000 a year for part-tiroe work (The Baton Rouge Advocate 2/24/94). It just doean't look right. Although Edwards claimed he was "the new Edwin Edwards" during the 1991 election, people are fed up with what has turned out to be the "same old Edwin Edwards." Polls show potential GOP candidates burying Edwards 2 to 1 in a run-off situation. However, Edwards presses on. Despite pledging during the election it would be his last term, Edwards hae announced he will seek a fifth term. A $1, 000 per plate fund-raiser with allies and political benef iciairies at a New Orleans hotel last fall raised over one million dollars for Edwards in one night! The Democrat Machin• The strongpoint of the Democratic machine in Louisiana has been its control of legislative and local offices. Even when the governor's mansion was held by Republicans or reform Democrats, the machine has been able to stymie their efforts. For ~any years people were of ten told they could not vote unless they were Democrats. In Louisiana as in Washington, key to building a new future will be not only winning high statewide off ice, but legislative and local races. Republicans will have to win in Louisiana through "bottom-up" efforts (as Haley Barbour calls them). The majority of Louisianians are conservative by nature and hardworking. They are ready for Republican leadership to replace the liberal, welfare•minded policies which have put our state at the bottom of the "good" lists and at the top of the "bad" lists ( ie, Louisiana is among the national leaders in homicides per capita, hiqh school drop-out rates and teenage pregnancy). The Democrats have controlled Louisiana for more than a century and the state has not reached its enormous potential, despite abundant natural resources, three of the nation's top ports (New Orleans, Baton Rouge and Lake Charles) and a workforce ready for good, honest jobs. But the factionalism and division of past Republican efforts will have to be laid to rest in order for Louisiana to Page 9 of 58 04/05/ 1994 11:31 5043838334This document is from the collections at the DoleLA RArchives,EP PARTV University of Kansas PAGE 05 http://dolearchives.ku.edu truly become a two-party state and to break the bonds of the "Edwin Edward• Democrate." Talking Point• * Louisiani ans are open to Republican meaaaqee relating to low taxea, welfare reform and economic development and job creation. • Crime. Louisiana's per capita homicide rate i• among the nation's highest. Louisiana U.S. Rep. Bob Livingston •ponsored "3 atrikes and you're out" legislation in the House. * Bow NAFTA will help create Louisiana jobs may be a good focus. Louisiana's ports and the petro-chemical industries employ hundreds of thou•anda of state residents. * U.S. Senator John Breaux of Louisiana and u.s. Rep. Jim Cooper of Tennes•ee are presenting an alternative health care plan. Senator Dole may wish to offer Republican alternatives to the Cooper/Breaux and Clinton health care plans. Qu i ck Facts: * Louisiana GOP voter registration is approximately 19.2%. * After recent New Orleans City Council races, two Republicans will sit on the Counci l for the first time ever . Peggy Wilson, who previously held the District A Council seat, won an At-Larqe Council position. She was the first Republican since Reconstruction to win & city-wide race in New Orleans. In addition, Suzanne Haik Terrell won the District A seat vacated by Wilson. Both did a tremendous job! * By winning just one more U.S. House seat in this fall's elections, the GOP can hold a majority of Louisiana's U.S. Bouse seats for the first time since Reconstructi on. * Louisiana' e current Republican u. S. Representatives ( 3 of 7 total ) : Bob Livinqaton (lat District, Metairi e) Richard Baker (6th District, Baton Rouge) Jim McCrery (5th District, Shrevepor t) Page 10 of 58 This document is from the collections at the IDole A RF Archives,P PARTY University of Kansas PAriF AF http://dolearchives.ku.edu -I OUR VIEWS ··:i-. Guv's associates cut gambling pot :hlj h11adl i nP.~ 'KPP.p ort co mini:. •Despitll pllldjei to do M rnnrP. r i'Yl'.rboal r:i.i;inv Tbuaines•, Gov l':tiwin l':dwards' 801\ still collecli> S10.U3 11 month rrom a r11~inn nrm for i:over nm1:1nl M\l 11liv11~ advirP. 11nrl l~gal services and 16 listed as a con ~ ullanl loothen. •A Shreveport Clrm wi th l it:"J- IA• close l~dward~ as- f.OCIStll Gus Mi.h1li~ stands tn kn(")('k down Sa6 mllllon from a New Orleans rlvcroo11l c11~i110 <:omp11ny . The news ~t v rii.u., cv111i1\i on co n.~r>r11tiv~ cla yt. this WP.Pk, Wtll'C simply lhll lal<.!~l in a linP of nmillir 11~ count' Of' people dusl! lo.> th O:- gi'WPTnOr ptofitinl from the ~tahi'i; flw-'1iuu11nlbllng iridu~t..ry . Jl wa~ a rear of news stun('~ ~urh .ll~ lh1~ that cauHd mtny peopl111 iu the !\tat.P. t.n r~!ist the lcgsll - zatlon of gamblln&- And whal 11\a11y had fear~d 1'111~ hPPn apla.~hcd in an Almo~ t contimlOUij b»rriil(&orheadhnts. CrltlC' ot 1111mblin~ predirtPn it would happen, T..nuli;l11n1, with jtt; hi~ l vry of political de-11l·ml'llftng, would not be able to mitiate ~nd operate g11mblin~ v('nturcs without thP. u~ual "tl t> rribh' i;t"'uch or mr· rupl mnuencing. Go .... I::dwardz' f:imily ;md fri , · ntl ~ w.-.uld m t t h ~ rrf'11m Off I.he top of the JucrwLi vu ~mi1111 V(•nturP• l('avlng the aenerid pupllh11·!'. wi1 h only 1hP drr,g .~ of probkrn i; wllh whid1ii.1111 1;.t. contend. th,. 11111,&.~ sHicl . I.Mt fall Stephen Edwards and hi~ hrol.lu ~ r rlllu f>is· ters sl.izned a <..'On~!:!nl a11r"'~n1enl wit.h t.t\I'! lloard of Mhics tor Elected Officl::ils in whid1 they .,.greed not to provide ~oods 11nd ti~rvlce$ to riverboAt eM inoq . lol:iui,i1m11 Dt:partmcnt ot Reveuu1:1 11tciciah noted in ::i rcporl l.86ued \o state police U111l SL"'µhen Ed· w11rtl~ rP.t:P.IVAI! .n total or h2,t99 fur tit!l"VICE!li l't'lr dered lo the operators of the Crescent City Queen rwerbont casino between July 20 and Dec. :l-4, l"~ - The rePOrt said the one-year contract, signed 111st J\llY. J)l)'S !:dwards $10,833 e mvnth fvr lesal a5si'- u1nr.I'\ 1100 gnv~l'l'\mr.nt rclotlomi ad\• i < · ~ . nr S120,P96 ovt-rthe course of'a year. ~:dwnrds ' attorney. J;('W1f U11gh·nuy, Luld i he r.thb boo.rd that th 0. uractiC() of t::iw 1~ different, and wasn't covered by the coni;ent decree. HI:! oid lh111 clhir.i; board could not stop l:ldw11rds from proctlclng law, and that the 5UJ)rcmc Court I~ the body rt!opun- &ible for tM!rstttng iHtorne)'!l Thr. P.thlcs:. board's ~ tA fl'w11• inR1.!'!1r.~d to 1nvcstifa1.C the matter. I! Skphe-n l.Ct!w11Nh ~111".h a grr.at lowyer chot his parl·time advice and assist.once is worth $13U,OOU a yrsr'! !3n 't it curio\ i~ thal with more t.han 10,000 l aw ~ ('rG In Loui6iana, St11ph1:1n Edw;ird ti lll5u w;o M•l.. ~ ·11 · <..1 tv rqlrr. t.r.nt three other New Orie.ins itr(';; nv1·rl>1•1il casinos' or course, Stephen Edwardt; i~ uui Lhll u11f y J-"!nliu ll close to the governor whO h3S conw.rt~d t.he new pmbllng laws into hi~ own personal enrl ~ hment ]f!'Wf\ . Cnn111dr.r M1;all~ . long1ime close associate of the ~v ·~ 1 · n v l' 11111d an Edwards appoint~'! t('I t"I!- .~I . Ill!!! T\n111'c1 nf'l'l~. gr. n t.~ . l'ar1t11l Gam1ne; 1nt.~rn11t.in nlll nf At.lantir. Cit y. N .J ., the parent company of the Firm dcvclopini.; the Cres rrnt. Cit.)' Qut.r.n. ~ign~ n 011rtncn;hip ui:reement A11r il 8, 1993. with Republtc Corporate &rvices. a :-;nreveport firm own<"d by M!Jnll t." nophC'w, Stimmy MiJ ahs. Uus MIJRll:s I ~ h~t rcl 1n rn11 :, 11 ltRnl lO Rr. pu l:\ hr F t- 01'1'1 I IY t1 mP thP. Rgrf'Pmr. nt wai; signed throu11h December, Capital paid Republic almost $5Y,OOO. nut tt111t'R thlr.lrP.n fr.nd . As future compen83tlon. rh" Mlj11lla f'lrm is entitled to almo&t ~O percent of pre-tax profits rrom ttlc boat, or nltern:itlvely cou Id NI f1A1t! :bH millinn ov P.r • n t:lfht-veor DCrlod ln :i buyout 11rru1~l'11,...11 \ A c: om ~ny official has !ndk .:i (l"(l it'q mo•t li kP.I)' cap it ;iJ will opr ror 1hn hu yu 11I .,~ tl w d11:.i 111·1 way to ui ~t if~ rP.~pnn~1b 1 hty . Iu rt:llH'tl fo1 the 111 on ('y , lh C' contrl'Ct c.:ill~ fo r Ill'· public to act u 11. " ~t r ategir rnn~11lt . 11nt ' 11'1 thr. gum llllrlllboat venture. r .in l f~1 fl ~ llli n lfn prn) i\· M ·~ iri t hl' v lol i ~f'll firn 11 h· Page 11 of 58 A4/flF./1 1 fJOtiC •o t h(' ~ ~>~ t'l lll H ~· hohttp://dolearchives.ku.edu h i1,:; COJ1Vl'l'h d I nl! llH"; gambllni.: hl\u into h>~ <•wn prrson:il <>nri~hml.'nl laws. Consider Mij;ili~ . IL• nel 1mr close a;;oociate or lh_,, governor and on Edw11nla appotnt~P tn the slaw llnard ofRctlenti;. C11pital Gaming 1ntcrma~iu11al of Atlantir City. N.J .. the- p!ITT.nt company orthe firm dPvl.'!\opini the c.-:rcs- ct Sunday Advocate C:HARl.ES f . MANSHJr JAM~ I! . WHITTVM F'•niti1ml lm ... . ·~ S1111dt!y, FP.b.?7, 1'ilil:t Page 12 of 58 04/05/ 1994 11:31 This504383 document833 4is from the collections at the DoleLA REPArchives, PAR UniversityTY of Kansas PAGE 08 http://dolearchives.ku.edu EWE defellds His .MarlSlon poker games "AS '. ~ · ma\ter of fact, I hope front the pub- sion since Edwards took office. :T..~ :~ llcit)l 1'11 havt! some Y(ll\tnt~n t;w>!rJ111-. !lnmP. Edw:im!l !Uliti h.nhP.rt. Guinry. whn h:a!;: in- AdVOCatUtaff . writ~rs oH~eae people have (aUeu by the wayside,'' · terests ~n .Yideo j>oker and is seeking a li- Edw•rds &«id at a ne\vs conference m the censt'! to o~rate a ri~rboat casino in Kcn- Gov:' F.awiii'Edwards said rueN41. lte ~s -e¥pttu1. · n~r, h0tt> pl.-yw. nothing wrong with playing .hi» st~kes . 'Edwiirds was reluctant to answer ques- And Edwards' friend Gus . Mijalis of f!OkP.t gamAil"tn f.hP. ctovP.rnor's M111t.11inn or .. tion• about the p0ker tames. in which POts ShrevePOrt. who is connected to both river- that some pines have included players who repor,tedly reach $10,000, and ended the bo11t gambling and video poker. also report- have C()~ns to Louisiana's blirgepJiing · news conference before reporters could edly has play.ed poker at the mansion. gamblmctnau.try. presshimoi1thei1SSUe. · Edwards &Mid Guidry w1ti; iu lht) puk~r AlthoUd.l ·District Attorney Doug Moreau Edwards·said poker games at the mansion game long before he got involved with rivcr- said i.Omo t)f'F.dward11' poker partner11 will be beian when Buddy Roemer was irovernor boats. questioned about the games when they ap.- and that some current players also played More.au said Tuesch1y that·riverboat gam- pear before a grandjury probing the·river- while Jtoerner was governor. · ing applicants. including those who rou- bo•t gambliog indu&try, &dwaa·duaid he ha& At ica.st two with tiea ·to the gambling in- noplanstostop thegames. duitry re~i:tedly ha~e played at the man· o ... IDWMDS, P•ge •A Edwards .::.::...::..:..::..:....~------_..,~-CONtlNUED FROM 1A ·\ ti.Ml)l l'l•Y pabl' with Bdwards. are Moreau said be I• not tl')'ing to use governor," Edward& said. u ... I mad e ~olanoDloialP'adJurylnves- the crand Jury probe to tnterfere the mletUe of following the trae11- upuoo into the Ute'• riverboat with &be governor's penonal enter· tlon be had." ! pmiDCindu..tr}'. . t.alnmanL :r.dward8 aaid ht: 11h•yi::d wi$h '1feCeaatilf, . tbllt people •re 'Tm not mJd at him for playing Roemer "on a number or occasioJQ s ,.i;.,.. · ,., •'-- cn...i.o" ...... µ ••'d. "'"·"'t's his llfltbln um ICOP9 va """' :-.-1....w--~-· Mo ''aa eiirlyon,hutnottecenUy," ·; tion."' Moreau tlAd. ''The r.ct that bull.Mle.''.. _, ....,...... Roemer bau&ld that while he WlltS they play a polm' pme with the 'lbe grand jury meets toda)'. but governor he did not play w:ith a113 •- g0ft'rooc Ii~ area tbat you'd q0ne ot the IOWl'nOl''s poker fl~rt - one who did bu5int::~ wilh Un:: ~tali: " wanttoinqulretnto." . nersiuchedulecltotestify. and games were not for the high As the lmwtllatlon JH'ogreueB, Edward attacked tbe media for <;takM for which Edwards plays. subpoena .tit oe iJllued to appli- ea1l1nC attention to bls poker pmel' cants for rivetboat caainos to testify when they did not make much out of Edwards said playing poker at thw bef'ore &be araad .iUl'f, the distriC't ltnP-mt'!r'~pnkl!reames . mansion, even high stakes poke, . attorneJNid. "It's tbe one tbiq that l did fol- isn't illegal becauee no one is mlll1- "You CAD uwrallJ conclude that lowtncwhat ~merdld, and it's not ing a profit from running the game. • r. they are pin, io be aaked about Oar. .urprlalng that fo(' fo\lt years noth· However, Edward11 quipren h4 · " card pmes.'' Moreau uirl. inlf was said about It whU~ he was plays to make a pront. Page 13 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu u- ~ ties gets riverboat license N.O. with Edwards u.id it said &u-1 Millet ::r.. ~gwni.l man )"e&r'i. ,;nd ~~ull@; : .• :S•:ncr.ons u resporuiDJc· re..-.e;"Cd rn sevai '*°· L!'r!WT HarnCtnn1ciL rn.lly .an ilm.h? becaa&e CIR diredcw for t~e De~rtrneP L ol 9fSCOITD,_ ull'ier 1~ r wcrbo~t b"yo Jt, Iur p.Jll i ~ 'lP $550.00il of Ille ~ - nO\ ·'.,:ptotnew• ,...ea .. rn-m hltd oorusr.-s RevenLll!':lnd l'l:u.t;o>n. S;~s h111111 put up $1 ,000 1• bl.!y in• Uion Pl<>Ject . ·~1th J;a[:ls Lcuisi ]IJ\~ abo lest;fied Ulal Sm- told Qt: JiC'('O$in!: panrl ia tJ11: Jin)~ •nd ana lnc. pr0111C1Pg Page 14 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu April 7, 1994 TO: SENATORD~ FROM: NINA OVIED 0 MACHIDA SUBJECT: GAMBLING T UPDATE Administration's Proposal - The gambling tax proposal would be a 4 percent excise tax on net gambling revenues that would exempt state lotteries. The proposal would also increase federal withholding taxes on gambling winnings (currently, the rate is 28 percent). An estimated $4.16 billion over five years is expected from this proposal. It is unclear whether or not Indian Gaming establishments will be exempt. As of March 24, this proposal is reported to still be a viable option. The Welfare Reform plan is expected to cost between $10 - $15 billion over the first five years, and $35 billion over ten years). Opposition - The Nevada delegation has already urged the White House to drop this proposal. The Nevada Gaming Control Board reports that the casinos that would be affected by this tax provide 29,466 jobs in Nevada. It is rumored that the Kentucky delegation will most likely do the same. A group of 30 travel associations and companies have also weighed in against the tax stating, "it is unfair to look to one segment of the economy to help fund welfare reform, especially when the result could be layoffs of thousands of hotel and casino workers." Breaux - Senator Breaux has publicly stated (March 30, 1994, Gannett News Wire Service) that the proposed gambling tax should be considered along with other options to pay for a needed overhaul of the nation's welfare system. "A gambling tax is just one option," he said. "It's not something that I'm advocating, but it's an option like anything else." Breaux noted both a Republican proposal and a House conservatives welfare reform plan also show reform costs in the beginning. Breaux elaborated that the extra funding was needed in the beginning to provide the day and housing care needed to change the program. According to a news article, in Louisiana, three gambling riverboats grossed about $51.8 million from October 1993 through this February. After total taxes of about $9.6 million, that means the proposed tax would have brought in about $1.7 million. Currently, Louisiana has no land casinos (although, at least two land casino proposals are being studied), but has approximately 15 riverboat casinos. Moynihan - Senator Moynihan, speaking on March 6 on CBS News's "Face the Nation," said a tax on casinos could be a "useful source of revenue" for a welfare reform bill. House side - Freshman Representative Cleo Fields (D-La.), said while he hasn't had a chance to study the proposal, "in terms of the general philosophy of taxing gambling for welfare reform, it's something that certainly warrants debate." Missouri Vote - Voters in Missouri defeated a referendum to legalize all forms of gambling in Missouri and sent casino stocks tumbling in the stock markets. The State Supreme Court had ruled that the state constitution prohibits some forms of gambling - so-called "games of chance," such as slot machines, craps and roulette. The referendum was not successful in legalizing these "games." As a result, casino stocks tumbled in the market. St. Louis based President Riverboat Casinos Inc stock plunged by almost 88 percent. Another referendum vote is expected as early as August. Page 15 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu INDEPENDENT PETROLEUM AsSOCIATION OF AMERICA ======MEMORANDUM======April 7, 1994 FROM: Roy Willis TO: Jim Whittinghill Office of Republican Leader RE: Louisiana oil and gas update The Louisiana Governor's Energy Committee just last month issued an update on the oil and gas industry in Louisiana (enclosed). The Energy Committee recommended a package of new state tax incentives (exemptions from the state's severance tax) to maintain existing production from stripper wells and to encourage new drilling. Highlights of the Energy Committee's report: I. IMPACT OF THE INDUSTRY ON STATE REVENUES AND EMPLOYMENT • oil and gas industry accounts for 15 to 17 percent of state general fund revenues. • oil refining accounts for 17 percent of all value-added manufacturing in the state. • the oil and gas industry (E&P, refining, transportation and marketing) accounts for more than 108,000 jobs with an annual payroll of more than $4.3 billion. • oil and gas E&P (exploration and production) generates more than $558 million in several taxes and another $245 million in bonuses, royalties and rentals, and employs 45, 000 people in Louisiana. • every oil and gas job generates between four and six additional jobs in the state. II. RECENT INDUSTRY STATISTIC FOR LOUISIANA • drilling rates in Louisiana have declined at a greater rate than in the rest of the country, dropping by more than half since 1986, when 2, 734 wells were drilled, compared to 1,233 wells in 1992. • drilling costs in Louisiana for onshore natural gas wells are four times higher for onshore wells than the national average; offshore natural gas wells cost Representing America's Domestic Petroleum Explorer/Producers For information call (202) 857-4722 Page 16 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu eight times more than the national average. • Oil production in Louisiana has been declining for nearly 20 years, down from its peak of 500 million barrels per year to 100 million barrels per year; natural gas production has also decreased, from a peak of 5 trillion cubic feet per year to 1. 6 trillion cubic feet per year. • Louisiana is principally a natural gas producer, roughly producing twice as much natural gas as oil and a BTU equivalent basis. / III. STRIPPER WELLS • Louisiana has approximately 18,000 stripper wells and another 3,000 inactive wells, • Stripper well production value was about $150 million last year, with an overall economic impact of more than $226 million. • Stripper wells directly employ 1,356 people with a $53 million payroll, provide $700,000 in royalties to the state and pay more than $1 billion in taxes other than severance taxes. Stripper well severance taxes are projected to be $3.56 million this year. • at current prices, many of these stripper wells will be plugged and abandoned. IV. OFFSHORE PRODUCTION • Louisiana is the country's biggest offshore oil and gas producing state. The offshore industry directly employs 10,000 people, with another 60,000 jobs indirectly sustained by offshore oil and gas operations. • $5 per barrel tax credit for deep water offshore production would generate between 56,000 and 105,000 new jobs by 1998. V. ENERGY COMMITTEE CONCERNS • Louisiana tax structure not competitive with other neighboring oil and gas states (Texas, Oklahoma, Mississippi) all of which have incentive programs in place or with foreign jurisdictions which have incentives, lower labor costs and less stringent environmental regulations. • Supports federal tax credits for marginal production, deep water offshore production. • the federal Oil Pollution Act of 1990 could have devastating impact on Louisiana's offshore industry. Page 17 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu VI. ENERGY COMMITTEE'S TAX INCENTIVE PROPOSALS: The following production would be exempted from state severance taxes: • stripper wells (producing less than 10 bpd) when average oil price is below $20 per barrel; • idle wells brought back into production would be exempt for five years. • horizonally drilled wells or deep wells (exceeding 15,000 feet) exempt until project payback is achieved or 24 months, which is earlier. • exploratory wells exempt until project payback. Page 18 of 58 .: MRR 22 '94 01 : 37PMThis LIOGR document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu P.2 The Oil and Gas Industry In Louisiana Two Years Later An Update J4g the 1992 Report {)f the Governor's Enera:y Committee .... March 7, 1994 Page 19 of 58 This document is from the collections at the Dole Archives, University of Kansas MRR 22 '94 01 :38PM LIOGR http://dolearchives.ku.edu P . 3 Governor's Energy Comm.ittee John P. Labord• Jlm..Flore9 Martha Madden Cbariman Flore• & Rucks Inc:. Oftice of the Govvnor Tidewata Inc. Bat.on Ro\lgt BatcnRouge New Orleam Michael Flynn Jamee R. Moffett Sandra S. Thomp1on Enon Company USA Ftteport..McMoRan Vice Chairman New Orleans NewOrleant Su.Son Inc. Port Allen Clive Fowler Harlan Northcott Amoco Production Northcott Exploration Jo'lnaA111 N1w Orleans Kanner Secntary Dept. or Natural Raourma Jolm J, Graham John Palmer Bat.on Rova• Orabal RelCNJ'Ca1 Palmar Petroleum CoviqtQn Shreveport PaulB-.OQ Mobil E&P USA Pamela Gruliham Blob Pattaroui Dallu. Texu Greenhill Petroleum Shell Of!ihore Mltairit Naw Orllana Michael Bourpo.ta Louiaiana Landowuen Asia. Robert Benin WUHem Pet:meoky Baton~• Chevron USA. Inc. Se.eca P.aaO\.Ll'CU New Orleans Houston. Tuu DoaBtigp IJOGA. Jo1eph Berrm1 B. Jim Porter Batoii Rou.p Secreiarf Mld-Contl.Deut Oil and Gu Assn. Dept. WUdllCe and FisheriH Baton Roup Wllllam Broadlaunt Bat.cm Rouse Attomey-at-Law Bmn·lWDT NewCRleam Paul Billiard Sec:ntary Badpr Oil Corp. Dept. ot Eccmamic Development William Bro1'1& Lafayette BatmaRoup Attomay·at-X..w Momoe Rober& T. Holleman Danial Schlaahter Gtologist Dante& Oil Co. Dudlq C•11•h•n Lalayetta Dallu,Tuu Placid Rebery Port Allen Da'ridBu.at IL Le11hton Stewuci CNG Producing Co. LA Land and Exploratioa JolmCallo11 New Orleans New Orlean.t Callon f1troleum Natchez, Miuiallppi Whitney Jasmine Jame1 B. Stone Kailet Alv.minum Stone Enerrt Walter B. Comeau: Vacherie New Orleam Great Southam Oil 6 Gu ~ Bobvt Keaton H.W. Tbomp1011 State Senate Budpt omce Commiaaonar of Comenati.cm IUahanl Currence Baton Rouge Baton Roup Tidewater Inc. New Orleans Gary Laborde WJ'. Wallace Breuelle, Sachle Is Wilson TaacoUSA GU)' EWson. Jr, New Orl1ana NawOrl1e.1 El·Oil. Ltd. ~ Page 20 of 58 MRR 22 '94 01: 38PMThis LIOGR document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu P.4 The Oil and Gas Industry in Louisiana Two Years Later An IJi>date to the 1992B.eport By the Governoce Enera Committee Overall conditions in the Louisiana oil and gas industry have gone from mar;inal at beat to near disastrous during the past two years. Virtually every indicator ia down. New tu threats and increased regulations are common and other states and foreign countries a.re luring exploration dollars away from Louisiana through incentive programs and less strinient reruJ.a,tions. Oil : prices have fallen drastically during the past year, makini new oil exploration activities within tha state, with aome exceptions, almost impossible because of the depre!sed prices. While natural gas prices have shown aome improvement during the past 18 months, it haa not been enouih of an improvement to spur any increased development within the boundariea or territorial waters of the state. Oil and Gas Still Important to Louisiana Petroleum Industry Aocounl• for 16 to 11 Percent of All General Fund Ravenu.t1• Despite the decHne in price• and other facton that will be noted/the oil and gas induatey continua to be a vital part of the 1.-0uiliana economy. TM oil on.cl ga. irulrutry ttUl account• for 16to17 ~rmnt of all atau 1encral fund nvanu••· The renn;ng aepnent of the induatry accounts for 17 percent of all the value-added manufacturing activity in the state. The oil and gas industry rupomible ia for millions mere in state revenues through the corporate income, franchiae and 1ala1 tue1. Municipal and parochial govermnenta alao receive milllom each year u a ruwt at property taus. aales taxes, sharing in 1everanc1 tax collections end royalty collectiom. 'I'M intlualryaccounls for more th.an lOB.OOOjob• and a payroll ofmore than $4.3 billion annucll1. Lcmiaiana is an oil and 111 1tate. Some effortl have been made to diversify the 1tata'1 economy. However, for the moat part oil and IU activity will continue to be one of the economic cornerltonea of the it.ate. '11lerefore, it ii appropriate that the 1tate comider actions that will not only help the tnduatry maintain its cum!nt level or activity and investment but to and ez:pand. rraw Louisiana must~ that a healthy oil and gu incluatry can be a tremendous benefit to the economy wit.bout the enactment of ~asive tuea and feu. A healthy oil ancl pa industry contributu to an Unproved buaineaa climate which will beneftt the entire 1tate. Th• piduttty bu paid and will continue to pay it1 fair share of tue• and fees. The industry, for example, worked cloulywith tha Department ofNatural Ra1ouroH during th.a 199S "uion • Pare 1 • Page 21 of 58 MAR 22 '94 01:39PMThis document is from the collections at the Dole Archives, University of Kansas LIOGA http://dolearchives.ku.edu P.5 of the Louisiana Lelialature to pass Act 404, which levies fees on oil and gas prod1.1c:tion in the 1tate to tinance oiltield 1ita restoration activities associated with the proper clo1ing of abandoned wallt. Thia ahows the commitment of the industry to being good corporate citi2ens. To accomplish the Fala of' revitalizing this most important industry, the atate ahould give careful conaideration to the enactment of an aggreslive incentive program and avoid the impo1if;ion of any exce1aive tue1 or fees which single out the petroleum indu.atry and put that industf)r at a competitive diladvantage with other atatee and £oreign COWltries. Industry's Value Covers Many Areas Each Segment of Industry Adda to Economy The oil and 1a1 industry· can be divided up into several unique segment• includin1 ezploration, production, transportation, refining and marketing. Each segment adds to the overall. economy or the it.ate. For eumpls: • Th.e ·marbtin1 aepumt of tha induatey, repreaentl the actual retail 1ale1 to CUltomera. Gasoline and special fuel sales in Louisiana ienetate ·more than $450 million in annual tu revenue1. Tb.ii .segment employs mere than 14,000 persons. t The ~ortation or pipelinl portion gf the industry generate1 milliDDI of tax dollars in l~ revenue throu1h ad valorem tu ccllection.11. In addition, the 1tate collect.a more than $17 million annually throu1h the natural pa franchise tu. More th&l\ 6,500 penom are employed by oil and products pipelines and natural gu utilities. • The reftntn119PUnt alone employ& 11,400 penons. The 19 nfin•ri•• in Louiliana account for ll7 pen:ent of all tha value-added manufacturing activity in the 1tate. Refineri11 pay mori than $180 m.tWon in stat.e taus• • on and ... prodact:lon pnetate more than esess million in •evennca tuel and another $248 million in bcmUI paymenta. royaltiu and rent.ala. Production and aploration emplayeu exceed 4!5,000 in Loniai•na. • Finally, while usually combined with the production, the uploraticn portion of the indua- try is really a unique sesment. This seK?Dent of the industry pneratea revenue for the 1tat.a eve~ when it is not 1uccesaf'ul. (See Ezh:iblts A. B and C) e.,_d on induatry atandarda, there will be one sw:ce1s1Ul well for every eight wells that are drilledl. Thus, eevesa of every eicht wells drillecl will be unproductive dry hales. However, the state and local communiti•• receive benefits ftom thoae dry walls. U1iD1 an actual well hiltoey, it ia easy to aee the benenta oiincreased exploration activity. The ac1tual dry-hole coat to the operator wu $816.886, which wu provided by out-of-state ·: int.arelta but 1p1nt antirely in 1.ow.;1n• with 1ome 40 vandon. The expenclitun pnerated more than $37.000 in at.ate and local 1alea taxel. If ei1ht 1ucb well1 are drilled before a payin1 well is discovered, the state and local governments will received nearly $300,000 in 1ale.s tue1. In addition each well, whether it is aucceuful or not, create• jobs (See EWb1t D). The peraonai working o:n the wells will be paying state income tans and will also be paying state and local 1ale1 taxes on the goods and aervicea that they purchase. Economic studies have shown that each oil and pa job pntratu between tour and m additi.opaljob1inthe1tata. Therefore, when exploration activitiea tab place, the 1tate benefits even if seven out otei1ht well& are productive I not wells. · Page 2 • Page 22 of 58 MAR 22 This document is from the collections at the Dole Archives, University of Kansas '94 01!40PM LIOGR http://dolearchives.ku.edu P . 6 Adverse Conditions Growing Worse Re,.ulotory Climate Complicated and Re1trictive The adverse conditions facing the oil and gas industry, aa outlined in the 1992 report of'the Clovernor'• Ene111 Committee, are the same or worse. That report noted that the taz 1tnicture of the illtate wu not favorable and that the severance tu on oil was the highe1t in the loweJ" 48 ltates. TM repla.tor:t climate hru 1rown. more eompli=Ud and ratrictiue. More job1 are being lost in the oil and gas industry. Foreign competition is increasing. Worldwide 1uppliea of oil are increasing almcu1t to the point of the world tacin1 another glat ot oil simHar to what was faced in 1986. Federal and 1tate regulatiom are continuing t.o mount. One prcpoaed aet of federal regulatiom, dealing with evidence olftnancf el responsibility requirements for oil spills, could almost shut down the otrahore industry. Many atate regulationa 10 far beyond the requirements of federal reruiationa in the same areL The severity and incon.siat:eney of the regulationa often force the industry U> spend millions of dollars needleulf. The reeuiat.ory climat.e, coupled with tha incentive• offered in other st.at.es and fbteign countries, ia drivins new explotatioit and development clollan away from Louisiana. Incentives Necessary Lack ofIncentive• Put• State al Diaculvantage The Govamor'1 Enaiv Committee concluded that conditions were not favorable in 1992 and recommended aeveral incentive measures.A reuisw oftn. •itu.a.tion ainci that ti111111how1 that eondUi.on.a have declinMl •v•n furtltu. Thus, the enactment of'incantive1 that will allow ~ induat:ry to maintain ita curnnt level or activity and inve1tmmt ~ to latet inc:reue that act:ivi1:)' and inVNtment ia in order. · Tua. ha.a NC1ntl1 •nadtd o •m• of lncentiwa, on. of which cl.aling with tM ,..... nu,. of inactiw wella has hatl an immtdl4tc impad on the atata. OlllaAcma "ii a~otetl lo adopt a NIU• of i~nliva th.&. year. lno1ntivfl ~ ruu:ler coMU:leranon ln Mlllia•ippi. Thia repott will ~ncentrate on the current conditions £acing the induaby while showing the historical perspective oftho1e conditiom. Finally, the report will oft'er a 1eriu ot'recommendations for comideration that will •eek to maintain the emtlng industry and to help that industry FOW· Status of CUITent Industry Indicators Virtually All Oil and Goa lndlcator• Pointi-,il' Downward The health of the oil and 1u industry cannot be judged by one indicator. It is not accurate t.o look only at rir count. or permit. iaued to determine accurately the condition of the indW1try. Instead, it is neceuaey to e;camine as many indicators as poeeible and then draw a conclusion based·on thoae indicaton. Drawinl concb1trion1 about the industry's status in Loui1fana is relatively euy. All of the indicaton-dril1ing activity, permit applicationa, rir count and production-are down. The only ucept?.on ii price. While oil pricea have been on a downward. llide for several mon~ natural gas pricu:have been nlatively level, with only minor downturm in the earlf weeka of 1994. Other tacton which impact the mdu.ttry in Louisiana include competition from. other ltatea and fo:teip countriM for investment dollars, ilobal politic., worldwide 1upply of oil, comumar deznand and federal zqulatiom. • Pare a • Page 23 of 58 This document is from the collections at the Dole Archives, University of Kansas MAR 22 '94 01 :40PM LIOGA http://dolearchives.ku.edu P.7 Drillini Activities Drilling Rote Decline Greater in Louiaiana than Other State• Drilling activity ha1 declined in Louisiana and throughout the country. ~ the following chart shows the actual number of wells drilled in the United States has dropped from more than 87 .coo in 1986 to 22,000 in 1992. Hower1er, the rem of drillilll det:lin11 hol bten. 81'f1Jttr in LouWa.na than in th.I ouero.ll ctJunlr1 a.nd. in aoma prod.r.uJin8 dabd tud& m Tam and Mi.aiaaippi.. The actual dri1linr rate in Teus 7, ooo is increuini. 'l'hil ia due at leut in 1.000 .---i~~------..i part to the enactment of a recent 1,000 ~-,1-....,.=:;;_-1r------l incentive providing a meverance tu cnc:lit tbr production from inactive wells that haw bean re-entered. Wbila the incentive grant• a 'IMmDrtllaD:' I ...... ,.,• ..,...1,000 ....,______..;...__-i .,._ LA TX JIB CK U.S. 0------~-~ 2. credit apinst aevenmca t.uu, the benants received u a nsult of royalties paid on increased production, additional employment and additlonal corporate income, franchise, 1ale1 and praperty t.uu more than make up Cortbe l8Vll1'lmC8 tu: credit. It ia alao important to remember that without the incentive, much of thia additional·t»rod\,tction would have never occurred. Th.erefort, no revenue waa actually lo1t a.. a result oftlUI incentive. Louisiana'• drillin1 rate hu dlopped by more than SO percent from 2, 734 wella ln 1986 to Average A unnlng Aig1 8t1t1 Cnanar•, Oflahore ana federal Waters 500 400 300 • R unnlng R lga 200 100 1975 1980 1985 1990 1901 1992 1;;3 ·Par•'· Page 24 of 58 This document is from the collections at the Dole Archives, University of Kansas MRR 22 '94 01=41PM LIOGR http://dolearchives.ku.edu P.8 1.233 well1in1992. However, the rate ot decline in Te1;a1 has been le11. drappinr from 12,700 to 7,000 while 94.1 oa.o Mi1aiasippi ha1 clroppad from 802 to 5.5% 1.1% 185. The rate of dec:Hna hu been i1'89.ter in 1992 1000 Oklahoma than in 1'luiaiana. This can be attributed to the £act that Oklahoma -4'-L.- d 1 92.9 92.4 baa no uUllllUnl area to eve op. 7.1% In addition more than 7o percent of Oklebom1'1 production ii from atripper 1181 wella, or wells producing 10 ba.rrell per 19H Wtlll DrlUICll In LA YI. Tllll U.L day of oil or leu. Hawaver. even with the • Total u.s. Wall• 0 Total u. Welle ~ater rate o£ decline Oklahoma chills mote 11ell1 per year than Louisiana. All evidence iudicat.81 that the •easy to fina• oil and gas h.u been found. Therefore, any new major or aigniftcant cliscoveries will be made by drilling deeper, 1oing further offshore, or using new techniques, 1uch aa horizontal drilling. Drillilw in. lAv•iaiMG ii l1ID1'I ~than nu-' othlt- arms. Figures tmlpiled in tha .zmnt AaBpgiation SJ1D"Q' .haw that tba &V8r8p cost of ID offihore lanili1na pl Will fl ei;ht timH more ezpemiva then the U.S. &Yel"llp. The 1Duiaia.na omlmrw c.mt tor a pa well is four t:im8' mater than the U.S. averap. Therefore, drilliq a wall in LouiaiaDa is more ezpensive than in other etate1, and ac:cordingly, the daeper a well bu to be drilled the more it is going to cost. However the financial return on the oil or gu from that well will not increue. While the typical oil well ia lea• upenaive than a typical pa well. sin~ the drilling depth ia not Bl creat, a U,ntm1n1 o&hare oil well will still COit m ta aeven timal more than the u.s. averap. $5,000,000 .------Average Coat of Drilling and !quipping Oas Wells $1 ,000,000 .,__ $0 1988 1989 1990 1991 1992 425,376 457,790 471,280 506,575 426,114 Louisiana 1,571,490 1,!35,189 1,867,004 2,004,530 1,743,747 LA Offshore 3,ee3, 121 3,o3s,ess 3 1er11,111 3,380,424 3,323,;3s ·Pace 5 • Page 25 of 58 This document is from the collections at the Dole Archives, University of Kansas MRR 22 '94 01:41PM LIOGA http://dolearchives.ku.edu P. 9 Production Oil and Ga• Production Decline•, Bui More Rema.in• to be Recovered Aa noted in the orieinal report of the Governor's Energy Committee, oil and natural su production haa been declininr for 20 yea.ta. While there have b110. IOme yeara that were somewhat better than the prior • 1arrela year, the overall trend hu been downward. 500,000,000 Oil production hu dropped Louisiana Crude from nearly 500,000,000 b1n1la '00,000,000 0 II Prod u c:tlo n per year to •lilhtly more than 300,000,000 100,000,000 banU par year. Stata production of natural 200,000,000 gu (excluding federal OCS) has 100,000,000 dropped from 5 trillion cubic feet to approximately 1.6 trillion cubic feet. 1110 1111 1uo 1HI 1HO 1n1 1HI The decreue in production can be attributed to two faoton. The firat and moat obvioua ii that LoW.iana i1 a mature oil and i'8 province. 77&a production of oll an.d eaa ha4 besn a pa.rt of this ata.U for all of thia mn.tury and ewn btl/bl-. thaL Because ot the lq producticm • history in tha ltat.I, it ii lolica1 to Mllllon Ct.Ible Feet (MMCF) aaume tbat tbsn ii not 11 mu.oh oil a 000 000 and pS left t.o be fbund. t t However, that u1umption ia 4 ooo ooo Natural Cai Production only partially. correct. Typical ' ' t.eclmoµ,gy doea not allowfot total 3,000,000 or 100 percent recovery from a reserv~ir. Ratu of recovery can 2 000 ooo vary from a little .. 20 percent to t I more than 50 percent nationwide. 1 000 000 In 10Uth Imziliall& recovery rata ' ' are at the ~ percant level. While tha recovery rate. are 1970 1975 1980 1985 1980 1S91 1992 1993 good, the abnormal preuure that allow1 that recovery rate al.lo create• additional problem. that must be addreased in the drilling and production 1tage1. Today, th1M ii lt:lll a conaiderable amount oloil and 1a1 left in the 1tate reaervoin. It ia Jt11t :a.qt tacln:afcally or economically feuibla to recover 1ome portions 0£ it. A portion of thoae reserves are beinr recovered throu1h stripper production. which will be di1ct111ed in a later aection. 'Iba l'!CDVl1'Y' ot mum of this oil and 111 will require the uee of innovative and expenaive production tecbJ:tique1 which demand a much hirher price than the current market will allow. However, aome olthil oil and gas can be recovered more feuibly. This cat.egory includu the oil and ps tbatil reoovered throueh the operation of stripper and incapable welll, horizontal drilling, reactivation of inactive wells, deeper wells and through the use of 3-D 1mmie teclmoloQY. ·Pare 8 .. Page 26 of 58 MRR This document is from the collections at the Dole Archives, University of Kansas 22 '94 01=42PM LI OGR http://dolearchives.ku.edu P.10 Employment Oil and Gas Job Loss Greater Than Steel and Auto Inclu1tri.es While most residents of Louisiana know that the oil and gas induatry work force has declined over the past few years, many do not realize how maasive the decline has been. Ezploration and production job1 within the 1tate of Lcuiaiana have been reduced by more than half from 93,800in1982 to 4~,749in1992. It is eatimat1d that the 1993 numben, once ftnally calculated, will show an even further decline to as few as 42,000 exploration and production job1. 180,000 ------___, 160,000 1--:::1111ii~----~;.;..;;.;.;~...-...... --..~__;._--.&,_--I,;..;..;;..&..;;.;.;.;;.;..;.;..;;;;.;;;..;.,;;;~nwnt l.av1la 140,0001---~-...._ ....______----1 120,000 r-----~~;;::::.:;;=::~~~~;::;:::j 100,000 ~------~ 80,000 r-~...... lllllll"""-a:::------1 60,000 t------~----==--~~---:=---=------t 40,0001------....!C:~~ 20,000 ..______, 1• 1913 19M 1911 11• 1987 1911 1919 1990 1911 11112 ,.....•. e&P • m.soo n.300 '78,000 78,SOO 80.900 S1.SOO 54.000 52,700 53,700 54,400 4.5.100 42,0IX.\ iotal I ri_....:., ~ 165,300 142,700 141,600 140,300 119,400 108.200 110,400 112.BOO 114';200 118,400 1oe,eoo 108,000 Ove:rall, the oil ~d gu industry has gone from 165,000 high-paying quality job1 in 1982 to 108,600 in 1992. Therefore, while more than 47,000 jobs were lost in the exploration and production sector, another 8,000 jobs were lost in other sectors, such as refining, marketing, pipelines and related utilities. As the Wall Btrut.J1Qum1l noted in its Dec. 16, 1993 edition. "When pricea atarlld their ateep deacent in the early '80'1, employment in the ~traction and refinini stags ofth• buaiM1$ began a d4clint that has ha.ltJ•cl the work force from its (national) peolr, of 920,000. That's as bad as any of th1 mor1 widely publiciz1cl Ruat Bflt (ttlfl and auto indu1trit1) down.sizings.• A comparison of employment to drilling activity and production lavel1 1how1 that aa exploration and production activity decline 10 does employment. Accordingly, if 1tep1 are taken io tncreue production and exploration and to make those activit!e1 more attractive in Louiliana, the number or job• in the etate will lncreua. Each oil and 1•• related job result. in four to six other jobs being created. A recent study by Louisiana Mid-Continent Oil and Gu Aaociation. dealinr with the economic impact of'tha oJfshore oil and p.s industry, revaaladthat 10,000 LmU.sianaresideJ3tsare •mployed brtheoftihon induatry. In addition, 4,000 companies throUihout the st.ate do business with the offshore industry. These 4,000 companie1 employ 60,000 people. Thus increased oil and gas activity not only stimulates the oil and gas industry employment, it also,stimulate. the 1ervice sector activity. • Pa1e 7 • Page 27 of 58 This document is from the collections at the Dole Archives, University of Kansas MAR 22 '94 01=43PM LIOGR http://dolearchives.ku.edu P.11 Investment lndwtry Maintaining Domestic Investment Al~ough oil and gas production is declining in Louisiana, and for the entire nation, the ezploration and production serment is 1till maintaining a considerable inve1tment in Louiliana and the United Stat.a. A ~view of data compiled by Arthur An I 30 ------~------...... _,lllHI 1j 00.. 11 1080 11.1 9.8 , 7,5 2.3 Prices Prices ON a Function of Global Market and Polineal Condition• Th8 one indicator that draws the moat attention is the price paid f'or oil and natural Pl· Price• have to be viewed &om two perspectives. Viewed on the abort term, pricea do not readily reflect the health or 11trength of the oil and pa ~dustry in Louiliana. Pric11 are a function of global market and political conditJ.om. ~ diatmbance in the Middle Eut can cause oil prioe1 to akyrooket beoav.se finand.al trad~rs will speculate that some type of shortage or supply diaruption misht be OCC\llTiq. Natural pa pricu at the present time do not react u quickly to political chaoge1. Thia ii beca~e the international trade in natural gas is of a much lower magnitude than oil. I I • Pa1e 8 • Page 28 of 58 This document is from the collections at the Dole Archives, University of Kansas MAR 22 '94 01 :43pM LIOGR http://dolearchives.ku.edu P.12 Some natural pa is imported from Canada and Mexico. However, most natural pa used in the United States ia produced within the jurisdiction of the nation, with the largest lingle IOU1"Ce being the federal OCS production in the U.S. GWf of Mexico. .ti.DO...------, When viewed over the long t.mm, oil and i•• price1 become much mot'I important. Oil prieas have for a number of years hovered between $17 and $20, and recently dropped down to the $14 nmp, which ii the prim paid at the refinery. Thia price includel t:ranaportation 1 s uo,.,r. on. Nev. 091• J.,.•• co1t1. Therefore, the price at th• ==----- wellbeadanJldbeewmlower. Natmal gu prices~ until Wt year, at such a level that theretum on theinve.9tment wu not enough to justify the new imwtmenta. When prices, particularly oil P...:•--•- .. o!!I. ol!l ....••..:.w-..2 WQvyv --ralona'Arterm •• $240,______NYMEX FIY•·D•v Average Price/MM ITU __, then it become• evident that the H.:so 1----..------,~-----~ revenues from production have not · 52 kept up with other induatriu. When. .20 compared on a barrel to barrel 11.10 1----1------~-~..__. basis, oil is ch.m~r than bottled 11.oa i--~------~-----4 watu, ice cream and aoft drinka. 11.10 ~-#------4 Despite thalow prie&1 aperienced s1.ao ....,,.------~ byoil'andpa in recel1t month.I and 11.10 ------9 1 yean, theindumyhasmainta;nwJ.a i-I-:";;.;;i,'fl;,!!l . 7~'-:.... f-;'.!'!!:Fi'"'"D"'- -+---"!'!!UJ~C~+--1-~"l!'!! ·. · !"!!!il"'--.....! -]....,•~.,,._;,•;m-J,..._.... 91A."""'ll,...• --4 cmstmtiDWltmentandlevel of'activity ~ in the atat.e and nation Therefore, it woulcl appear that enactment ot any incentives that can have the result of increuing the revenue received from oil and gas operations can only increase the current level of petroleum activity in the stat.e. A final point related to both price and prcduction is the fact that Louisiana produce• more natural gu cm an •nerv equivalent buia than oil. The ratio of natural pa produmm ta ail wbmcompaedon. aBTt1 1 ... 1H• 1980 1•1 •Page 9 • Page 29 of 58 MRR 22 '94 01: 44PThisM documentLIOGA is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu P. 13 Stripper Wells Stri.pper Well• Involve Low Volumes antl are Therefore More Vulnerable to Price Changes and lncrecue Operating Co•t• Part of the existing production stream in Louisiana ia the larp number of •tripper wella operatina in the state. Approximately 18,000 ltripper welll in 51 pari1he1 are currently operating at an averap rate of 1.1 barrels of production per day. An additional S,000 it.ripper wella an inactiVI. The value of the stripper production in Lcm;Friana was islightly leu than $150 mUHon :in FY' 92193. The stripper production, accordini to models used by the U.S. Department of Commerce, the Loulalana Stripper Well Production 12 10 e 6 4 2 f 983 1188 1989 1990 1991 1892 Interstate Oil and Gu Compact Commission and the IBU Center for EJW1Y Studies, shows a broader economic activity value in Louisiana of $226.1 mUHon. Tha stripper wcU production is directly re1pon.1ibl• for Z,366 job• with an. eatimattd payroll of $63 milllon.. TM 1tri.pper production provicltd $700,000 in t"OyGlty inr:onw to the atatc antl dinetly paid. $1,080,000 tn ta::f1 other than 1e111ranc1 ta.a. Severance tun are.collectad at a rate of3.125 pete1nt on 1tripper production. The tu is projected to pnerate apprmimat.ely $3.56 m;mon for FY 1994195. Since stripper production is 10 low, there is little room or cushion to of!'1at operaan. costa. when oil pric11 drop to low level1. A at:ripper well producing 83 batrel1 per month at $20 · generates $880. From that 1e'Vetance tues, royalties, property ta.mi, labor, electricity and other overhead espe11111 are paid. Ittha price of oil dropa to $15 per barrel, the revenue from that 1am1 well drop1 t.o *'95 ptr month or a total decline of $165. Howavar, apanu1, auch u labor and electriclty. do not drop at the same rat.e. An incentive that would eHmfnate the severance tax on stripper production woulcl have a meal impact on the 1tate. Howeuer, failure to grant tM incenti111 may ha111 an euen 6T"CJter impael on tha atat.. If oil pric.1 do not rebound to IM $30 l1uel, many •tripper well& may ~ pl1J811tl and abandonatl. If thil h4ppena, all of the asaociated b11Mfits Naulting from tM atripper production, aa noted a.bov•, will be loat inoludi1111 royaltie•. •ale• ltuu, •mploym.nt loccl properly tm:a and othtr benefits. Elrht statu currently mmpt ltlipper wells from an 1evarance taus. ·Pare 10 • Page 30 of 58 MAR 22 '94 01: 45PMThis documentLIOGR is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu P.14 Related Federal Issues Loui11ian.a Bene'fi,t1 from OCS Aotivi~ The U>uisiana oil and gaa industry d.oee net operate in a vacuum.. Therefore, it is necessary to consider federal issues when examinin.I the status of the oil and gas inclustry. As previously noted, mo1t of the 10 called 11 easy9 oil and p.s hu been found in Louisiana. Therefore, the search tor new reserves is not only roing deeper into the earth, but farther out int.o the GullofMe:dco. Louisiami benefits tremendously from the exploration and production activities in the federal offshore area of the Gulf or Mezico. As previously noted, cz recent LouiBiana Mid-Continent Oil and Ga.a Aasociation ducly shows that l 0,000 persons an directly employed by the offshore oil and gas industry. Tha.t industry utilizes 4, 000 uenclors in the state. Thosa 4, 000 vendor• employ 60,000 or more persona. Offshore production operationa spend apprmimatel1 $J.4 billion annually with. thll 4,000 Louil lane vendors. Any increa.sed actiulty in the Gulfof Mui.co would therefore benefit the Louiaiana 11ruic1 cin.d su.ppi, induitry, which would then have a positive impacl on. th. total state economy. A recent 1tudy1 National Economic; Impagta pf an OiUG11 Production Tai Credit to StjmulateJleep WQer Drillin1 by DRI/McGraw Hill, conclud.ed that a federal tu Incentive of $5 per barrel or oil equivalent would have a tremendoua impact. The study flndings show that 1uch a credit would create 56,000 to 105,000 new job1 in 1998. Such a credit would also have positive impacts on federal revenues, would help reduce the f'ederal debt and have virtually no impact on near-term annual inilation rate1. Therefore, it would b1 to th.a benefit of the st.ate for the Governor and the Legislature to encourage the Congress ot the United States to proceed with the cnmtin1 of a tu credit to encourage deep water drilline. Also, because of the importance of the ofl'shore activity in the federal area or th• Gulf of Mezico, the stat.a should take whatever steps it can to encourage deep water development and not areat A.DJ barriers or obltaclea to the offshore industry operatiq in Louisiana. Need for New Incentives Viable Incentive• Can. Lead to In.creaaed Oil and Gcu Activity Loui8icnc/s history of offering uploration and. production incentivea h.a.1 been. li.mi'Ucl at best. Previously offered incentives have either been inadequate or not allowed t.o nm their full course, such u the STEP and LEAP programs instituted in the mid-1980'1. Some partl of the severance tu code dealing with incapable amd stripper wells are viewed by some u incentiwa. Th111 11ctiom of the law, while nducing the severance tu rate on oil and gas wella with low production, do not fully take into account mark.et conditions; and accordingly, are often not adequate tc keep a marginal well on line. Thia hu been made especially true in the past few years with the enactment of the st.at.e's produced water regulations. I.ow production wells typically yield a large amount of produced water. Prior to the en.act.tnent of the state regulations, this water was discharged into nearby salt water bodies. This produced water must 1lOW be either treated ar disposed 0£ th!'ougb injection wells, thus increasing the operating cost ot thua low·procluciq well.a. Further, the state's regulations dealing with the storap and disposal of NORM (Naturally Occurrms Radioactive Material) is also maldn1 it more expensive to operate virtually all oil and iru wells. Thea conditiom are aggravated for the low-producing wells, since the yield of oil or pa ia ao -.all that it doe• oot provid• the rtvenua needed to comply with thele regulat:i.om, p4f other overhead ezpansea, pay royalties and still return a profit for the operator. • Page 11 • Page 31 of 58 This document is from the collections at the Dole Archives, University of Kansas MRR 22 '94 01:46PM LIOGR http://dolearchives.ku.edu P.15 Incentive Relief is in Order Incentives Will Encourage Development, Create Job•, and Generate Revenue• Based on the conditions facing the oil and gu industry in Louisiana today, it is clearly evident that some type 0£ incentive relief is in order. Nsi.ghbori.ng 1tat.a1, thll federal govemmsnt and foreip, countriu an offering, or haua offered, inantiues to encourage increased ~ploration end production. Howewr, none ofthese incantiuu have been. applicable to Louisiana in the past. Therefore, some action in. thil area ta needed.. Enactment of incentives dealing with horizontal drilling. deep wells, stripper wells, ezploratory wells and reactivation of inactive well1 i1 expected to increase drilling and production activity. Such increased activity will benefit the industry, the service industry* the state and individual royalty ownen. Tb.a Louisiana. oil and 1ru indmtry i1, in some respects, a developinr industry. It has rebuilt itself from the ground up. Aecordinsly, the state should treat the oil and gu industry as a developing industry and offer the same incentives and encouragement it would ofl'er to any industry it was trying to attract and encourage. By o~ering incentives and reducing the regulatory burden. Louisiana will begin to attract new investment dollars. That will lead to jobs being created, people being hired and the economy benefit;ing. However, it ii important t.o remember that operat.ars must receive a price fer the oil and ps pl'Jduced that will allow them to meet all upemea michhow a competitive ret..mi on the invutmant.. As wells mature, production may decline, but production cost. do not drop at tha same rate and. in some caaea, may poaaibly increase because Df the asaociat.ed costa already noted.. There are many areas that could be ad.dresaed throU1h incentives. The Govemar'a Enel'IY Committee hall focused an those incentives that can offer the ereatest ~eneflt for the state and induatry. . ,. Recommendations of the Governor's Energy Committee 1. Prod,uction from wells returned to service aft.er being inactive for two or more years, or having had 80 daya or less of production during the past two years, shall be exempt from state severance taxes for a period of five years. 2. Crude oil produced from wells having production ot 10 barrels or leas pet day, hereinaf- ter referred to aa •tripper wells, ahall in any month in which th1 average pelted price for a ao·day period ia leas than $20 per barrel. be exempt :trom severance tues. S. Production of oil. natural gas, or oil and natural aaa trom any horizontally drilled well. er any well drillecl to a ttue vertical depth of more than 15,000 feet from which production commenced after the effective date ot the legislation, shall be eumpt &om severance tu:ea pursuant to the following: ,_.. The ezemption shall be from the belrimrlns date or production until project payback is achieved.. However, the exemption will not exceed 24 months commencm1 with the month of initial production. B. Project payback shall be deten:nined as of the date of completion of the well ~d shall not include any expenses beyond the completion date of the well. - Pare 12 • Page 32 of 58 MRR 22 '94 01:46PMThis LIdocument is from the collections at the Dole Archives, University of Kansas OGR http://dolearchives.ku.edu P. 16 4. Production of oil, natural gas, or oil and natural pa from any new exploratory completed well aftar the effective date 0£ this leiislation, ahall be exempt from all levers.nee taxet until payback. 5. Activities in the federal OCS area of the Gulf' of Mexico are vital to the state. Therefore, it i1 recommended that the U,uieiana Legi1lature enact a concurrent resolution urging the fed· eral pemment to ll'&Dt a tu credit for deep water drllllng. Justification for Incentives Each ot t1w above list.ad incentives represents an economic advantage to th• state. The advantap com .. from tht economic activity with each new barrel ener11 production. owners or Royalty benefit. Jobs are created. Sala.ri.11 are paid. Payroll, corpo:rate income. 1ale1 local ad valoram taxu and taua are paid. Without the incentive• li1ttd above, many potential barrels of reserves and production will net be developed. Inactive Wells Ba-Entry of1n(J(Jffr1e WelZ. Will Baw Poa~llve Spin Off Weill that are currently inactive, but not yet formally plu1pd and t abandoned, offer a remendoua reaourc9 to the 1tate it the proper incentive• are provided. Re-workfnc an inactive well to force out new production is a risky and u:pensive propolitior:i. As with moat oil and au projects there is no guarantee or aucceaa. Durm1 the 199211993 fiacal yeu, operatora in Loui1i•n• re-entered 264 inactive wella. Of that number, um~e•Nl 79 were ventuzu. 0£the remaining amount, 98 were oil weU. and 87 were pa 98 oil wells wells. The included 25 1tripper wells producin1 ten barrel• of oil per day or les1. Clearly, there is incteued production to be pined from re-entering inactive wel.l.t, but became of the risk involved and the po11ible low return, 1ome incentive ia in otder. Currently. theH inactive welll yield no revenue for anyone. By .~fl'ering an incentive enco'Lll'age the reactlvation to of theae wella, the 1tate will be creatinf i.n economic 1timulua for the creation ot n•w joba and related economic activity. Reactivation will al.lo prevent many inactive well1 from becoming "orphaned wen.• that will then have to be properly plugpd and abandoned by the atate with revenues pro'rided by the Oilfield Reatoration Act of 1998. 'l1li8 incentive prosram ii currently beini used succeHfully in Teu.1 • (See Exhibit E) Stripper Wells Lor.o Volume Stripper Well• Need SolM ProteoUon Ala~n•I Low Price• Stripper wella are thOM wella which have le11 than 10 barrels of production per previo'Ully noted, day. Al th... low-producing weU. carry a tremendoua overhead cast aa a result 0£ normal operating requirement& and state regulation1. Because the yield from the1e wells ii 10 •mall. there is leas opportunity to recoup costs. Thus operating , il'the Gperatiq cost1 begin t:o exceed the ftnancial return :from th• well. it becom11 prudent on the part ot the operator to abut in the well and ceqe production. When prodw:t:imia halted the state 1olel the severance tulll acm"UinlJi'om Tbs It.ate that well penmmently. andoths landawnen loutbe royalties l'81U!tingfrom that wall In addition, the a•eociat.ecl economic ben81itl are also lost forever. Parishes alao loH property and aal• taxes. By allolrirlf a leVerance tu incentive when oil pricu fall to a predetermined level, the atat.e ii helpin1 to u1ure that tha royalties and auociatad economic bmeBtl will con.tinu.a. Thi 1tate is also providiq itleltwitb a better cha.Gee ot collectlns future severance tue1 aftar the price of oil riaee above the predetermined threshold. .. Pa1e 18 • Page 33 of 58 This document is from the collections at the Dole Archives, University of Kansas MAR 22 '94 01:47PM LI OGR http://dolearchives.ku.edu P.17 Deep Well Drilling lno•ntiv• Would Help Malle Drilli-,,6 Co•I in Loui1iana Competitive With Other Slal•• The incentive dealing with wells clrilled to a depth or mare than 15,000 feet will result in additional wells beinr drilled in the state. Wells of this depth are more expensive than the average depth wella. Figures compiled by the Joint As•ociation Survey reveal that the cost of drilling wells in Louil~ ls more ezpenaive th.an other parts of the nation became or the unique geol08)' of the state. Accordingly, the deeper a well has to be drilled, the more ezpenlive it la roinf to be. Horizontal welll rapta11nt a fairly new technological innovation. The horizontal well is particularly useful in tighter oil and gu forma.tiona because more of the productive raservoira are ezpo1ed to the wellbore throu1h the harizontal drilling. However, horizontal wells are also more expemive and drilling conditions are again complicated in Louisiana beca\l.le ot 1 the state 1 uniqge polOiD'• Also important to note ii that oil and gas production in Loui1iana is declining. All of th1 10 called "euy to 6.nd• oil and gas has been found. Thus the search for marketable quantities of hydrocarbons hu t.o IO deeper into the earth. Yet, repzdleu ot the co1t a1aociated with findin1 and developing oil and ga1 from a particular reservoir, that oil and gu must compete in the marketplace with oil and KU from other state• and other countries that wu much less expensive to &.d and produce. Thua, tba it.at.a m.mt allow aome type of aeverance relief for dHp well l)roj•cts ii it wanta new reserves of oil, and particularly natu.tal 1as, to be developed. Exploratory DriJling lnoremecl lh:plaraHon 'l'larou61a Drillln1 BnMlf'lt• Slate An incentive that would encourage exploratory drilling b1 tlbnin1tm1 severance taxes until project pRfback. would benefit the 1tate through increased 1ale1 tu. collectiona and aaaociated economic activity. For ·each aucce11ful e:rploratory well, a total of ei1ht wells have to be drilled. The state receives no severance on the unproductive wells or dry holes. However, it does receive sales tax collectiom on the money spent to drill and equip the well•, 'l'bv.8 an inc:entive to encourage greater ezploration activity could prove beneficial to the state. (See Ezhibitl A and B) - Pare 14. Page 34 of 58 This document is from the collections at the Dole Archives, University of Kansas MRR 22 '94 01: 48PM LIOGA http://dolearchives.ku.edu P.18 EyihitA Impact of Severance Taz Credit Well Ca1e Study--Deep Onshore Well--13,000 Feet Facts 1. Actual Dry Hole Coat to Operator $816.886.00 I. Parish Salea Tas Generated 17,832.00 3. State Sale• Tas Generated 19,888.00 4. Total Salee Tu: Generated 37,488.00 &. Severance Tu Paid It Well is Dry Hole 0 The industry 1tandard is that there will be one successful well in every eight wells drilled. Therefore, ita tot.al oleight weU. are drilled., the pariah and stat.a 1ale1 t.axes will total $299, 7 44. Amount of aeverance tax 101t by the 1tate if the tu is omitted until payout, or for two ;years. whichever com11 first, based on the following assumptions: 1. Completed well coat to be $1. 700,000.00 2. Production rate: S,000 MCF of natural lulcla)' '75 banell of condemsate/day 8. Price tor la& la $2.IB per MCF, oondenaata prlae ii $15 per barrel 4. Net nvmu Interest Is 'JS percent . 5. Severance taz-12.SCJf> for condemate, 7.5 cent• per MOF for pa 8. Open.t1n1 upeme• are $U50 per clay .· ~· The net cub flow par day and dayt to payout with severance tu: included: 3,000 MCF of natural 1as z $2.25 per MCF z 7!5'1> NRI minus $168 in severance tu per day equals $4,894 per day. 76 barrels of condensate per day x $15 per barrel:&: 7S ~ NRI minus $105 in severance tu per day equal.I S739. Revenue Generated Per Da)' $5,839 ($4,894 + $879) Operatm.s expwesll>ay 1110 Net Revenue .,'83 Aaauminrthe $1.7 million complete cost and revenues of$~,48S per day, it would take 310 days to achieve p&)'Out. With severance tax collections at $273 per day, the stat.e would lose $84,680 durinc th&!! payout period. Since the 1ucceu rate ill one ofeiaht, the encourapment ofdrilling ofwells actually increuea collecticm by the it.ate and parish by $299,744 in aales tu revenues le11$84,630in1tat.1 severances taze1 for net collec:tlons ot $215,114 plus severances taxes of $28,344 paid by landownen Cot total tollectiona of $243,448. 'Ibe lolt 1everance tu revenue would be repined by the stata through increased aal• ta collections that would result from increued drillin; activities. In addition, ether reven.ue11 ara pnerated includinl feel, corporate income tax.el, personal income t.ue1 cm employee•' wases and ·~and the W. taus paid by the employeea on the rooda and services they purc:haae. Page 35 of 58 MAR 22 '94 01:48PMThis LIdocumentOGA is from the collections at the Dole Archives, University of Kansas P. 19 http://dolearchives.ku.edu ExhibitB Impact of Severance T~ Credit Well Caae Study··SS Barrel• Per Day Facts 1. Actual Dry Hole Cost to Operator $148,384.03 2. Parish Sales Tax Generated 1,843.15 8. State Salee Tu: Oe11erated a,esa~a1 4. Total Sale• Tu Generated 6,829.00 5. Severance Tas Paid If Well is Dry Hole 0 The industry standard is that there will be one successful well in every eight wells drilled. Therefore, ifa total of eight walls are drilled, the parish and state sale• taxes will total $44,232. Amount of severance tax lost by th.a state if the tu: is omitted untU payout, or far two years, whichever comes :first, hued on the following assumptions: 1. Completed well cosi to be $300,000 SI. Pztoductio11 rate is 15 barrell per day a. Prloe f'or oil ia $1S per barrel 4. Net revenue interest la '75 peroent · G. OU eeveraace tu rate la li..S perceut of value 8. Ope:ratmr ezpemes are $50 per day Th~ net cash flow per day and days to payout with se•erance tu.mcluded: 25 barrels of oil per day x 15 per barrel times 75 percent net revenue interest minus $85 per day severance tax equals $246 per day. · Revenue Generated Per Day $148 · Operatiq expenaellDay _a Net Revenue $198 Assuminr the $800.000 complete cost and revenue• of $196 pet day, it would take 1,530 days or 4.2 years to achieve payout. In this case the two.year muimum exemption takes effect. thus the severance tu lost to the state during payout woulcl amount to $35 per day times 730 days (two years) or a total of $25,550. Since the 1ucces1 rate ii one of eight, the encouragement of drilliilg ofwella actually incraaaaa callectiom by the stat.e and parish by $44,232 in aalea tu: revanua1 les1 $25,550 in state severances tues for net collections or $18,682 plus severances taxes of S8,l5l54 paid by landowners for total collections of $27,238. The lost severance tu: revenue would be regained by the stat.e through incnased sales tax collections that would result from increased drilling activitiea. In addition, other revenues are generated includini f'ees, c:orporat.e inmme taxes, penonal income taxes on employee•• wages and salaries and the sales taxes paid by the employees on the goods and services they purchase. Page 36 of 58 MRR 22 ' 94 01 :49PMThis LIOGR document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu P. 20 Exhibit C Impact of Severance T~ Credit Well Caie Study·-60 Barrel• Per Doy Facts 1. Actual Dey Hole Cost to Operator $148;884.03 2. Pari8b. Salo Taz Generated 1,848.lG 3. State Sal.. Tu: Generated S,888.81 4. Total Sale& Ta Generated l,5i9.00 &. Sevel'Bllae Taz Paid It Well is Dry Hole 0 The indmtry standard~ that there will be one successful well in every eight wen. drilled. Therefore, i£ a total ot eirht wells are drilled, the pariah and state 1ales taxes will total $44,232. Amount of severance tu lost by the state if the tax is omitted until payout, or for two yean, whichever com.es 8.rat, bued on the following as11umptions: 1. Completed well co1t to be $300.000 9. Pl'ocl.uciion rate ii 80 barrel.I per day a. Price for oil iJI •1" per barrel 4. Net revenue intereat ta 75 percent I, Oil 1evennce taz rate ls 12J5 percent of value 8. Operatin1 upeme. are •so per day The net cash flow per day and dayl to payout with severance tax included: 60 barrels of oil per day x 15 per barrel times 7t1 percent net revenue interest minus $815 per day severance tu equala $S90 per day. Revenue Geaenated/Day $180 Operatiq Bzp9D11e81Day ..U Net Bevenu. $840 Asanming the $300,000 complete cost and revenue• of $840 per day, it would take G~~ day. to achieve payout. With severance tu collectiorus at $85 per day, the state would lose $47,176 in aevarance tu revenuu. Since the 1ucce11 rat.a is one of eiJht, the encoUl'aiemant of drillini of wells actually inc:reuea collec:tiom by the atate and parish by $44,232 in sales tu revenues less $47,175 in state 1everance1 taDI tor revenue collectio111 (1011) of ·$2,948 pl1.111everanc:u tue1 of $115.lS40 paid by landownen for total net colleetiOJU of $12,597. The lolt savaranca tax nvenue would be re1ained by the 1tate through increue 1all1 taz collecticna that would result from the increased. drilling activites. In addition, other revenues would be pneratec:l including feet, corporate income tue1, personal income tll on employee•' wqel and lalari81 and the 1&Je1 t&zel paid by the eznployeu DD the goods and 1ervice1 they purchue. Page 37 of 58 MAR 22 '94 01:49PMThis document is from the collections at the Dole Archives, University of Kansas LIOGR http://dolearchives.ku.edu P.21 ExhibitD Per1on1 Partially or Wholly Employed during drillln6 ofan 11,000 foot on1hore well in South Louisiana 1. RisMova 5 truckdriver1, one supervi1or 2. Ri; employeea 19 men, 1 supervisor, 2 1aleamen a. Mud Product. 1 truckdrl.ver, 1en,rbieertl1upervi1or, l aalea.m.an 4. MudLoaer 2 men, 1 truckdriver, l 1ale1man 5. Lo1gin1 8 me~ 1 dispatcher, l 1al11man 6. Cement 4 men, l engineer, 2 wanhoul•m•n, l 1upervi1or 7. Cutnr 2 truckdrivers, 1 aaleaman, 2 yardmen 8. Float Equipment 1truck.driver,1aaluman,2 warehouaemen 9. Bita 1 salesman, 1 delivery 10. Rent.all (Chob) 1 1ale1ma.n, 1 rigup man, 1 truckdriver 11. Rental.I (PVT-Flo.Show) 1 salesman, 1 rigup man, 1 trucker 12. Board Road S tru.ckdriven, 10 workmen, l aupervisor, 1 backhoe operator, 1 dozer operator, 1 dragline 13. Stabilizen 1truckdriver,1u.lemnan,1welder,1 warehouseman 14. Geologiat 2 15. Geophylldtt 1 16. Draft.nn•n 1 17. Petroleum Engineer 1 18. Wellaite Foremen 2 19. Land.men 2 20. Abltract.or 1 21. Fundrailer 1 22. Permit and Reg. Affair1 1 23. Account.ant 1 2,, SecteW7 1 25. Survey Crew s 26. · Si1?1m1ker 1 27. State Employee1 3 ta reKUlate operationa 28 .. Telephone 1 ealeaman, 1 inatallation man 29. Full l truck.driver, 1 dilpatchet ao. Rir Suppll•• 1truckdriver,1 dispatcher Sl.. Cuin( Crew 1truckdriver,3 crewmen 32. Drive Pipe 1tnickdriver,2 ctewmen A. Total men workin1 on one 11,000 toot well drilled over a 30..day period = 120. B. Averap Salary• $2,500 per month-times 120 employee. equals $300,000. C. All\Ulle 20 pereent of eaeh man'• time in this month ia attributed ta thU well. D. Payroll pnerated by one 11,0000 foot well over 30 days d.riliini time equals $60,000. Page 38 of 58 This document is from the202 collections 408 5117at the Dole Archives, University of Kansas BOB DOLE ID:202-408-5117http://dolearchives.ku.edu APR 08'94 16:00 No.018 P.01 JOYCE: Please include in Sen. Dole's briefing materials for Louisiana that Rep. Clyde Holloway and his wife, Cathy and son, Mark will be attending the event. Page 39 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu Enclosed you will find the following information: o Information on Leadership 2000 o Briefing from the LA Republican Party o List of attendees o News clips o LA GOP Leadership o LA DFP list o District map Page 40 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu April 8, 1994 MEMORANDUM TO THE LEADER FROM: SUZANNE HELLMANN Q11 RE: LOUISIANA ISSUES OF CONCERN o There is a large rift among the Republicans in Louisiana. Rep. Dastugue, discouraged by the State Party's ineffectiveness, started his own group - "Leadership 2000. 11 Campaign America was initially invited by this group, but also received a request from the State Republican Party. The battle continues but we have chosen to ignore it and let them work it out. You will be attending events for both groups. (Enclosed is information on "Leadership 2000 11 ). o Remapping district -- a special legislative session could begin on 4/18 to redraw the congressional lines. o Gambling is a growing industry in LA. Most GOPers don't like the fact that it's on the rise. Also, the Clinton welfare- reform proposal to increase the tax on gambling revenues to 4% will obviously concern many. o The State GOP has invited you to attend their 1995 convention in January or February where they will nominate gubernatorial and other candidates. o Jimmy Coleman, Sr., who will be escorting you from the Dastugue event to the Trust event, offered the use of his former hotel, the Windsor Court Hotel, now owned by his best friend. You will recall that this hotel was used by you during the Republican convention in 1988. Page 41 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu State Legislature House: Republicans 16 Democrats 88 Senate: Republicans 13 Democrats 24 1992 Presidential vote Bush 41. 6% Clinton 46.3% Perot 12.0% Page 42 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu REPUBLICAN LEA CONSERVATIVE CORNER Across the state, lifelong contrl>utors All contnbutions and volunteers, dedicated to Republican Leader· elected officials sh~ 2000 are and long time Party dedicated to recruiting, trUi- adivists have tlr.d of the ing, funding Infighting and and electing candidates *1 the issues iilhmua" tests which local ha"/8 com• and legislative levels. Your support to dominate our Party's agenda. comee They directly back to your town and to are unhappy with poor communi- candidates cation and you help us identify and elac;t. lrs with the constant requests for that simple. time, energy and money without seeing any Republican Leadership ratume on their inveatmenta. 2000 needs your Most of all, generous financial 9upport-$35, they •re tired cf losing state, $50, $100, local, and $500 -but we also need your national elections to weak, help and advice. unqualified Tak• time today to Democrats • year make a list of people you in end yew out know who would I've heardthesec:omplaiints, be good Republican candi- and I share dates in these important your town or parish. Give us their concama. That Is why I addresses formed and phone numbers K you can. "19 " Repubrican Leadership 2000. We'll Republican follow-up with them to encourage their Rep. Quentin Dastugue Lead&fShip 2000 Is designed involvement to elect Republican candidates. We're a registered You can use the mem~rshiplresponse In tha past three state political action committee years l'le traveled (PAC) form on page 3 to cont ad vs. Or can 504.oS82- throughout compriMd of people like you • volun· Louisiana, meeting with thous.nds teen;, 2283 or 524-3342 for more information. of RepUblicans, donors, women's club members. Young conservatives and busiMSs Republicans, Join us I Let's buill;t a Partv as dedicated leaders, promoting state central committee and to winning our Party, its candidates parish executivecommiftae as you are! arid ideals. While each members, elect9d person I have met officials and others has his or her own experiences who are f9d up with losing and special and are ready to win. perspective on the future of Louisiana and To reach our goal the Republican Party's ·to become the ma- role in that future, ;onty party of taxpayers, there is a common concem students, the elderly. and frustration small business owners that seems to bind everyone. by th• year 2000, we need you to help us help you. H you're still not convinced ...... During 1991 the state Democratic Patty {OEMOPAC) raised and Honoway, Fox McKelthen, spent near1y $1 mllUon to defeat Buddy dozens ot gOOd Republican legtslative Roemer, Clyde candidates, Jocal officials and candidates. By contrast, the state Repubrican Party reported Of!ly $7,500 in direct cancfidate aid. Whars more, Fast Eddie Edwards reports a c~aign surplus of about $1 million to elect his hand-picked constltUtional which he will use liberally (hOw else?) convention delegates, special election legislative candidates and other cronies. Until Republicans can match that massive spending power, how can we expect our candidates to compete? Act today! Join Republican Leadership 2000! Page 43 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu R t P lJ ft L I. C. I\ N Rep . Quentin D. Dasrugue, Chalrm"n About Republican Leadership 2000 and "Leadership Louisiana· RepubHcan Leadership 2000 was founded in early 1992 by Representative Quentin Oastugue of Jefferson Parish, to promote the development of a strong, viable two-party system in Louisiana. Today, this state registered committee has over 500 contributing members throughout Lou1stana, and commits its resources to voter education, local candidate recruitment, and governmental problem-solving efforts. ·Leadershtp Loulstana" is a high gua11ty 60 minute publlc affafrs televtsioo program produced by Cox Cable of Jefferson Parish. It Is destgned to present Republ1can and conservative opinions on problems facing federal, state and local governments, and to help educate Louistanians on the many complex economic. educational and socia11ssues confronting government today. Representative Quentin Oastugue will serve as host of th1s show which will be nroduced monthly. Production begins April 1st. Featured guests will include elected officials, journalists, academics, and state and national leaders of the conservative movement While "Leadership Louisiana" will have no advertising, each show will include a number of PSA's and .. bumpers.· Republican Leadership 2000 wtll make "Leadership Louisiana· ava1lable at no charge each month to tnterested cable stations, and will help publicize programming 1n communities where "Leadership Louisiana· is aired. Planned, and soon to be produced programs include: -The state's recurring budget crisis (April} -Reorganization of state government (May) -The role of women in the GOP -Conservattve plans to improve federal government -Prospective Repub11can Presidential candidates for 1996 Page 44 of 58 'ON I I 3NO AlCl3dOC!d v9:6 nH1 vs-L -Cid~ This document is from the collections at the Dole Archives, University of Kansas ., . http://dolearchives.ku.edu Lamar Alexander Boosts Republican Leadership Former U.S. Secretary 2000 and Tennessee of Education Governor Lamar Alex- ander rallied the support l Louisiana of nearly 200 J Republicans for the and successful ·s1gntricant efforts• of Republican lll . "' t Leadership ;l I .,. 2000 at \ ;· ; ~ a March 6th coektail ·t • .. reception fundraiser in New I !"i The Orleans. event, which drew Republicans from as far away • as Lake Charles. Shreveport and )~ Monroe $16,000 netted nearly for the important support candidate activities of Louisiana's only Re· : publican PAC. • As spacial guest ~ Leadership of Repubtiean .. ~-~ 2000 and Representative i Quentin ' r ; Dastugue, Alexander to Louisiana brought a message of •optimism and progress. rooted Lamar Alexander publican In tradittonaf Re· and Quentin Dastugue beliefs: fiscal responsibility, efficient management cause of Republicanism.· of government Alexander resources, and limited served as Following two years government in· fitst Tennessee's as President of terference In the two-term Republ'ecan the University of Tennessee daily lives of all 1979 Governor from at Knox- Americans". to 1987, establ"1Shing ville, President George reputation a national Bush selected Alexander urged for his efforts Alexander to serve Louisiana Repub- cation, to ff11)f0ve edu- as Secretary of Edu- licans to use their suocesa In attracting cation. •creativity, energy, vestment, foreign in- existing vehicles for creating jObs Alexander IS acknowledged progress such as sector, in the private by many Repubficanleadership and enhancing the as a potential front running 2000, and the tax mate economic di- candidate for and spend policies of of Tennessee. He the Republican Patty's state and national man servedasChalr· 1996 presiden- Democrat administrations of the NatJonal Governors' tial nomination. to further the clation Mscr in 1985 and 1986. Republican Leadership 2000 !II----- Mission '.:~.. \ ~~ ~ ' . . Statement Cable ·~'·,'')~ ~~~~i~0· :_f._ • ' ...... • TV cont. 4=: · .,,..... ~,t,:.. 'C"J-:~ · l_~S~~' • ... • from page 1 · .:~x: · ~t.eadersh"ZDOO•·i ' •. t... ,'~,,I ._ . ::.ra., > • ~~·i'"' , •\,•' ' ~)~?.-: tr;:rt~ ' "' ...... "''t'• " • •I•' • · ~es ';~·.• J:J ·~ ~t F! · ~ ~' . oommittad to RePUbU',","\.•:" of '~ .,· · ment or local access making -1\1, , , ' •• channels the ' 'A .,JI I ; l ,f"' - ~ .t I In all - I I ).:J development \ ~I \,7 ....,~ parts of can Party Loulstana's ·::.\•· ·.~. , the state wm agree ma;ority Party \ :.:1 :<·:: ership to air "lead- by the. ~ Republican l..eadershfp 2000· two or more 2000. Members of 20001s· · month. times per ~ .~L.ead~~hip a registered state 2000 pofttical a~~ ,., Total dedicated are committee. The~ctionsand~ cos1s associated with to Identifying, recruiting, gram for the pro· trainlrlg~~pporting of Republican Lea~""20Qgd·.~: 1993 will be near $9500. Republlcan ), porate sponsorships Cor· 'Candidat9iS7' local ovemed b and other . . .. and islative Ii ~~aid. · 1.:::1~ tions are presently dona· offfces ././!'!!': leg ~ectors. R •I• ~. being sought. ~ut Louisiana. ~!~~v . " .. :•"" r','".' ou't~;-.. more Information For to and Dastu on "leadership 2000~, a ~~· to the e. serJ~as ~ ·~ please call Greg tried and true ;· 9t' Beuerman at 504/52~ Repu~ c.e~~ 3342. To tune • \. . ~oo() in "Leadership J /.\ , ' 1 ~t 1 2000· . \ ' • ., -"':'l..1 , ..... , ,1 \, pie ase .;r " ~-'- " call your local cable 1993 Elephant operator . Stomp and Invitational The Louisiana Golf Tournament Republican Legisla· Set for tive Delegation's Event May 17 Elephant Storr\) Chairman. Rep. take place Monday will Lancaster, Charles with ·a , May 17 at 7:30 promises a good shotgun start at 8:30 at the Country p.m. with music time for all lowed a.m. fol- Club of Louisiana by Oliver ·Lala· by an awards banquet ton Rouge. In Ba- Special Morgan and p.m. at 12:30 It will honor Haley Barbour, Guest Ernie K-Ooe. For more informalion Chairman of the Preceeding these events regarding Republlean National lhe celebration or for tickets please Committee. the annual will be June Peay call golf tournament beginning in the Delegation (504) 342-6287. office at 3 •••llJ!l!ll!'!l-----~~H~ l Page 45 of 58 C' 1 ' ,..l ~ -;;3;-;;0-;;oc nnc ·n~1 Vl-l .l This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu Political Briefing I Louisiana: Edwards black voter registration and a larger per- May Call Special centage of black voters would be incorpo- rated into surrounding white districts - Session to particularly the 5th, now represented by I Redo ·Map GOP Rep. Jim McCrery. With Louisiana's It: Congressional cam- ''The plan that the plaintiffs paigns still on bold after in the origi- t a federal court threw nal litigation held out out the state's districts, is not favorably t there's anew chance looked upon by the Congressional · that the redistricting fracas could delega- be settled tion, but [this] plan has gotten a more out ofcourt in a special session favor- ofthe sJate able response," said GOP Rep. legislatlire perhaps as early as this montlL Richard : .. ·. Balcer. "And l'think'everybOdy agreeS-that · LOuisfana is api>ealing to Supreme the . having a court-appointed expert draft a plan Court the ruling in Decemb_er ~ya panel of is probably the de~irable 'three federaljuctgeS least outcome." thatd&~ the state's · However, Fields,'hhnselfa districts "null imd void" former state after'il challenge to Senator whose newly created ~ Relf~ c1eo:Fie1as· maJ' Page 46 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu HOTLINE 4/4/94 *18 REDISTRICTING: LA TO HOLD SPECIAL SESSION? LOUISIANA: A special legislative session to redraw congressional district boundaries could begin 4/18. State Senate Pres. Pro Tem Dennis Bagneris (D), said Gov. Edwin Edwards (D) "appears willing to consider a special session before the fiscal- only session [4/25] if lawmakers have a workable redistricting plan." Bagneris "said he told Edwards that a new plan realigning most of the congressional districts but leaving the three in the New Orleans area unchanged is acceptable." Bagneris: "I think this can be sold to both the House and the Senate" (Anderson, N.O. TIMES-PICAYUNE, 3/30). Under the header, "Officials say map shorts North La ••.. Plan centers 6 districts in the south," Monroe NEWS STAR's Allen writes "Northern Louisiana is getting cheated under the latest congressional redistricting proposal for the state, some area lawmakers who've seen the plan say. All but one of the proposed districts is partially in South Louisiana and all but one of the current incumbents lives in South Louisiana." LA's 93-page appeal to the U.S. Supreme Court, their 1 92 remap was ruled unconstitutional by a three-judge federal panel 12/93, "was filed [3/28) and released to the public" 3/29 (3/30). NORTH CAROLINA: "The charges may be over racial gerrymandering, but testimony in a federal lawsuit over the state's congressional districts ..• indicated that the real culprit in how the lines were drawn was old-fashioned politics. The pork barrel. Personal favors between politicians. And Democrats' determination to keep Democrats in office." Gerry Cohen, the state's "top bill-drafter and map-maker" testified before the three-judge panel: "All lines in this case were politically driven .... Voting rights issues played a very secondary role." Cohen "testified how the state bent congressional lines to benefit incumbents, their staff or potential future candidates." His testimony came in the third day of a lawsuit filed by five white voters from Durham ••.. They charge that their due process rights are violated by the black- maj ority 12th District" (Neff, Raleigh NEWS & OBSERVER, 3/31). Page 47 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu HOTLINE 3/1/94 *15 LOUISIANA: LEGISLATURE TO HOLD SPECIAL SESSION ON REMAP Before the final gavel fell on a special session of the Legislature to approve an emergency appropriation for the state prison system, Gov. Edwin Edwards (D) "said another session is in the works -- this one to tackle congressional reapportionment." Edwards, after addressing a labor group in Baton Rouge: "There is nothing firm now on the dates, but the fact that there will be a session is firm ... Interested legislators are trying to devise a complete plan that will be acceptable to a majority of the legislature and to members of Congress •... If we can get together a plan, I will include it in a special session as soon as possible." When asked if the plan would keep the two black- majority districts, Edwards: "I hope so. 11 State Rep. Sherman Copelin (D) "confirmed" that a redistricting plan is being drafted. He said it "won't be released until the seven Louisiana congressmen have a chance to study it and make comments." A "source familiar with reapportionment problems said the plan likely will involve modifications to the sprawling 4th district to give it 50 percent to 58 percent black voter registration. The district now is 63 percent black, but a three-judge federal panel ruled that its configuration constitutes racial gerrymandering. The court has ordered the district redrawn, "which is expected to change all or most of the other six districts," before the 94 election (N.O. TIMES-PICAYUNE, 2/26). NPR's Naylor on current lawsuits against redistricting: "If the challenges are upheld, the district boundaries will most likely be thrown out and redrawn ...• Not all of those suing to overturn the majority black districts are civil rights opponents." Naylor reported that Grambling City Councilman Eddie Adams, who is black, "joined in the effort to throw out" the LA district: "There was a whole age of people that fought for equality ... and fought for integration, and now that we've got it, we're using that vote to re-segregate ourselves" ("Morning Edition," 3/1). Page 48 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu HOTLINE 2/28/94 LOUISIANA: Rep. Cleo Fields' (D-04) z-shaped minority-CD was ruled unconstitutional by a three-judge panel in federal court 12/93 and is now being appealed to the U.S. Supreme Court. The DoJ has also filed friend-of-the-court briefs in LA's case. Fields, on the DoJ action: "The Justice Department must step up to the line and defend the Voting Rights Act" (L.A. TIMES, 2/23). Page 49 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu HOTLINE 3/29/94 *19 LOUISIANA: NEW MAYOR CONFRONTED WITH PAST "Contrary to his denials during the campaign that he was ever hospitalized for drug abuse," New Orleans Mayor-elect Marc Morial "sought treatment" at an emergency room in 1 86, telling the medical staff that he had "snorted cocaine," according to hospital records and a nurse who was there. The records were provided to the N.O. TIMES-PICAYUNE two days before the 3/5 runoff between Morial and atty. David Mintz. After being shown the records, Morial "emphatically denied that the incident ever took place." He called the records, "a thousand times false." After being told that emergency room nurse Deborah Duhon had recently verified the accuracy of the records, Morial issued a statement: "I have not been shown the story by the Times Picayune. However, it appears to be the same false account with which I was confronted two nights before the election ..•. I denied it then, I denied it on election day, and I deny it today. It is a lie. 11 But last week, Duhon "gave a first-hand account" of Morial's admission to the hospital. Duhon: "He came toward the desk and said his heart was racing. He said he'd snorted cocaine. We treated him immediately" (TIMES-PICAYUNE, 3/26). A TIMES-PICAYUNE editorial: "There is no pleasure in being the bringers of bad news. But there can also be no choice for news organizations when it comes to reporting on matters of public interest. The public has a right to know, and we have a duty to inform. After years of lethargy, New Orleans desperately needs strong political leadership and vision. If he is to provide these, Mr. Morial must first show that he can offer the integrity, born of honesty, that is the cornerstone of true leadership" (3/26). Page 50 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu HOTLINE 3/10/94 *21 LOUISIANA: EDWARDS GOES BEFORE GRAND JURY Gov. Edwin Edwards (D) was to appear before a grand jury "to field questions from high-stake poker games at the Governor's Mansion to his children's past business dealings with riverboat casino operators." Edwards didn't "seem especially anxious about his grand jury appearance": "I'm perfectly willing as governor to appear at any time it is felt ... it is advantageous to the grand jury proceedings and give them the benefit of what information I have" (Nicholas, N.O. TIMES-PICAYUNE, 3/9). Edwards kicked off the "Governor's Straight Talk Line" -- a 3- minute radio address that stations are invited to replay. Edwards: "Because many important events are happening in [LA] which do not get the proper attention in the daily major media, I am taking this means ... to try to keep you informed about what's happening in [LA]" (3/9). LANDRIEU: TIMES-PICAYUNE's Wardlaw writes "more than a little Moon .•. showed through" as Treas. Mary Landrieu held a press conference and "pointedly let reporters know when she was through answering questions on one topic and was ready to move on to the next." Landrieu, whose father was ex-N.O. Mayor/Carter Trans. Sec. Moon Landrieu, "stopped short of announcing for governor in the 1995 race but said 'in all likelihood' she'll run": "I wouldn't get into the race unless I thought I had a great chance to win." Wardlaw's prediction: "She's running" (3/9). Sec/State Fox McKeithen (R) has already announced. Other possibles: Ex-Gov. BUddy Roemer (R), '91 GOP nominee David Duke. Page 51 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu LOUISIANA Dud Lastrapes Chairman Present elected - November Chairman, Republican Party of Louisiana, 14, 1992 Minerals Management Member, Policy Advisory Committee, Rotary Club to Life Committee Founding Member, Acadiana Right Dud Lastrapes Enterprises Previous Parish Chairman, 1980 - 1988 1976 - 1988 Member, State Central Committee, - 1980 Lafayette Parish School Board, 1972 Mayor, City of Lafayette, 1980 - 1992 League of Cities Former Member of the Board, National Personal Children: Two; four grandchildren Louisiana Education: University of Southwestern 416 Doucet Road, No. 5-E Lafayette, LA 70504 (318) 234-2265 (o) (318) 234-2613 (f) 62 9/93 Page 52 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu LOUISIANA Marilyn Thayer National Committeewoman Present National Committeewoman, Louisiana, elected - November 1992 14, Board of Directors, National Federation of Republican Women, 1978 - National Membership Chairman, NFRW Previous Unit Club President, 1975 - 1979 Republican Parish Executive Committee, 1979 - 1987 White House Fellowships, 1981 - 1984 President, Louisiana Federation of Republican Women, 1991 1987 - Executive Committee Member at Large, NFRW, 1989 - 1991 Republican State Central Committee, 1992 RNC Activity Delegate, Republican National Convention, 1976, 1980, 1984, 1988, 1992 Platform Committee, 1980, 1984, 1988 Member, Executive Committee of the Platform, 1984, 1988 Personal Spouse: Stuart Children: Two Education: Fellow, Institute of Politics, Loyola University; American Institute of Banking, Boston (cont.) 60 9/93 Page 53 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu (cont.) 7925 NelsonStreet New Orleans, LA 70125 (504) 866-0393 (h) (504) 865-0010 (f) Page 54 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu LOUISIANA Roy Brun National Committeeman Present elected - November 14, National Committeeman, Louisiana, 1992 1987 - Member, Louisiana House of Representatives, Election Supervisors, 1980 - Member, Caddo Parish Board of Executive Committee, Member, Caddo Parish Republican 1976 - Committee, 1979 - Member, Republican State Central Previous Reagan for President, 4th Congressional District Chairman, 1976, 1980, 1984 Republican Federation, State Chairman, Louisiana Young 1978 - 1980 Executive Committee, Chairman, Caddo Parish Republican 1979 - 1987 Party, 1979 - 1983 Secretary, Louisiana Republican Treen for Governor, 1979 Presidential Elector, 1984 for Bush, 1988 Co-Chairman, Northwest Louisiana Activity RNC 1976, 1980, 1984 Delegate, Republican National Convention, National Member, Committee on Rules, Republican Convention, 1976, 1984 National Convention, Member, Platform Committee, Republican 1980 Association Member, National Republican Legislators' 1993 - Member, RNC Rules Committee, (cont.) 61 9/93 Page 55 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu (cont.) Personal Spouse: Kimberly Children: Two Education: B.A. and J.D., Louisiana State University 630 Lane Building Shreveport, LA 71101 (318) 424-1802 (legislative office) (318) 424-1441 (law office) (318) 676-7901 (f) (318) 688-6520 (h) Page 56 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu LOUISIANA DFP Rep. Quentin Dastugue (hosting events) Sen. John Henkel (also involved in hosting events) Greg Beuerman, Executive Director Martha Belchic Page 57 of 58 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu Louisiana - Congressional Districts 2 Page 58 of 58